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O Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed
O Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 130 100 Variable expenses 28 60 Contribution margin $ 52 401 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month, Exercise 5-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $6 per unit and increase unit sales by 15%. 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2 1289 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $6 per unit and increase unit sales by 15%. Net Operating Income by NG 2 Req 28 >
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