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Required information The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 65 35% Per

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Required information The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 65 35% Per Unit $120 Selling price Variable expenses Contribution margin 78 s 42 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. 2-a. Refer t o the original data. Management is considering using higher-quality components that would increase the variable expense by $5 per unit. The marketing manager believes that the higher quality product would increase sales by 20% per month. Calculate the change in total contribution margin. 2-b. Should the higher-quality components be used

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