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 $ 130 78 $ 52 Percent of Sales 100% 60 40% Fixed expenses are $86,000 per month and the company is selling 2,800 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 $6 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below.

Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Fixed expenses are $86,000 per month and the company is seling 2,800 units per month 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company usea higher-quaity components that increase the variabie expense by $6 per unit and inctease unit sales by 15% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below