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Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) {The following information applies to the questions displayed below.) Data

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Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) {The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below. Per Unit 44 Selling price Variable expenses Contribution margin Percent of Sales 1000 55 450 ces Fixed expenses are $76,000 per month and the company is selling 2,500 units per month Exercise 5-5 Part 2 2-a. Refer to the original data. How much wil net operating income increase decrease per month if the company uses it components that increase the variable expense by S4 per unit and increase unit sales by 20% MacBook Air $ % 5 8 7 B 6 2 3 P T Y E 70 w G H . F S D . M B V C z 9. command 2-a. Refer to the original data. How much wil 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 20% 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 > 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 204 Net operating income KRA Req 28 ) of! Next > MacBook Air # 3 5 4 % 5 7 2 0 P C T Y 70 w E 3 K F T G 4. S D V M N B V C N command

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