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Required information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per

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Required information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $ 55 33 $ 22 Percent of Sales 1805 60 40% Fixed expenses are $71,000 per month and the company is selling 4100 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 25% 2.6. Should the higher-quality components be used? 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 S4 per unit and increase unit sales by 25% 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. Reg 2A Reg 20 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 25%. Net operating Income increases by 90.2003 Reg 2B>

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