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Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Per Unit 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 of Per Unit Sales Selling price $ 135 Variable expenses 81 Contribution margin Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. 1008 60 $ 54 401 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company 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? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B 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%. by Net operating income Required Information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $87,000 per month and the company is seling 2,900 units per month Per Unit $ 135 81 $ 54 Percent of Sales 1008 60 401 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? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Should the higher-quality components be used? OYes ONO

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