Question
+ Part 2 of 2 Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. 8
+ Part 2 of 2 Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. 8 points Selling price Variable expenses Contribution margin Percent Per Unit of Sales $100 61 100% 61 $ 39 39% Book He Price Fixed expenses are $80,000 per month and the company is selling 3,700 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 $3 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.
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