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ork - Chapter 5 6 Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) The following information applies to the questions

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ork - Chapter 5 6 Exercise 5-5 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 Selling price Variable expenses s 21 Fixed expenses are $74,000 per month and the company is seling 4,400 units per month Exercise 5-5 Part 2 2-a. Refer to the original data Management is considering using higher-quality components that would increase the variable expense by S4 per unt. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate ne change in total contribution margin 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below Req 2A Refer to the original data. Management is considering using higher-quality components that would increase the vaniable expense by $4 per unit. The marketing manager beleves that the higher-quality product would increase sales by 25% per month. Calculate the change in total contribution margin MacBook Air 4

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