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! Required information [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin

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! Required information [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $85 51 $ 14 Percent of Sales 100 60 CON Fixed expenses are $77,000 per month and the company is selling 2,600 units per month, 2-a. Refer to the original data. How much will net operating Income Increase (decrease) per month in the company uses higher-quality components that increase the variable expense by $5 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 2 Reg 20 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher Quality companents that increase the variable expense by $5 per unit and increase unit sales by 20%, DY Req 28 > CH Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Selling price Variable expenses Contribution margin Per Unit 585 51 TOO 60 400 Fixed expenses are $77,000 per month and the company is seling 2,500 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 $5 per unit and increase unit sales by 20% 2-6. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 20 Should the higher quality components be used? Yes No

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