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: Selling price Variable expenses Contribution margin Percent of Per Unit $ 70 49 $21 Sales 100% 70 30% Fixed expenses are $74,000 per month and the company is selling 4,400 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 28 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 $4 per unit and Increase unit sales by 25%. Net operating income by Req2A Req 2B > 2-a. Refer to the original data. How much will net operating incom components that increase the variable expense by $4 per unit an 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tab Req 2A Req 2B Should the higher-quality components be used? Yes ONO < Req 2A