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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the data above. 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%. (See below for a hint if you are having trouble getting to the right answer.) 2-b. Should the higher-quality components be used
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