of 2 ! Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. 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 $5 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used?

Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. 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 $5 per unit and increase unit sales by 25%. 2-b, Should the higher-quality components be used