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Required information [The following information applies to the questions displayed below] Data for Klauer Corporation are shown below Selling price Per Unit $ 80

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Required information [The following information applies to the questions displayed below] Data for Klauer Corporation are shown below Selling price Per Unit $ 80 Percent of Sales 100% Variable expenses 44 55 Contribution margin $ 36 45% Fixed expenses are $76,000 per month and the company is selling 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 $4 per unit and increase unit sales by 20% 2-b. Should the higher-quality components be used?

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