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Data for Hermann Corporation are shown below:

Per Unit Percent of Sales Selling price $ 50 100% Variable expenses 28 56 Contribution margin $ 22 44%

Fixed expenses are $70,000 per month and the company is selling 4,000 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?

9 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 23 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%. increases 0 10,000 6 Req ZB >