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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)
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 Per Unit $50 28 $ 22 Percent of Sales 1001 56 Fixed expenses are $70,000 per month and the company is selling 4,000 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
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