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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% 70 30% Per
Required information [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Percent of Sales 100% 70 30% Per Unit $ 90 63 $ 27 Selling price Variable expenses Contribution margin Fixed expenses are $30,000 per month and the company is selling 2,000 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 $2 per unit and increase unit sales by 10% 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B 9 of 9 Next >
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