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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 1008 70 Per Unit

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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 1008 70 Per Unit $ 110 77 $ 33 Selling price Variable expenses Contribution margin 308 Fixed expenses are $82,000 per month and the company is selling 3,500 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 $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used

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