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Data for Hermann Corporation are shown below:

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 if 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?

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Req $2$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 $20\%.$

Net operating income