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Required information

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Data for Hermann Corporation are shown below:

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?