Required information

Exercise $6-5($Algo$)$ Changes in Variable Costs, Fixed Costs, Selling Price, and Volume $[$L$06-4]$

$[$The following information applies to the questions displayed below.$]$

Data for Hermann Corporation are shown below:

Fixed expenses are $$73,000$ per month and the company is selling $4,300$ units per month.

Exercise $6-5($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$-$qualit$)$

components that increase the variable expense by $$5$ 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.

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 $$5$ per unit and increase unit sales by $25\%.$