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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% 60 40% Per
Required information The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Percent of Sales 100% 60 40% Per Unit Selling price Variable expenses 85 51 Contribution margin 34 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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