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Required Information [The following Information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price

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Required Information [The following Information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price $ 118 190% Variable expenses 77 70 Contribution margin $ 33 Fixed expenses are $82,000 per month and the company is selling 3,500 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-b. Should the higher-quality components be used? * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 28 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 decreases X by $25.900 x

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