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Required information Skip to question [ The following information applies to the questions displayed below. ] Data for Hermann Corporation are shown below: Per Unit

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[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Per Unit Percent of Sales
Selling price $ 55100%
Variable expenses 3360
Contribution margin $ 2240%
Fixed expenses are $71,000 per month and the company is selling 4,100 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 $4 per unit and increase unit sales by 25%.
2-b. Should the higher-quality components be used?

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