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Required information The following information applies to the questions displayed below Data for Hermann Corporation are shown below: Selling price 100% s 100 61 s

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Required information The following information applies to the questions displayed below Data for Hermann Corporation are shown below: Selling price 100% s 100 61 s 39 Contribution margirn Fixed expenses are $80.000 per month and the company is selling 3700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses components that increase the variable expense by $3 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 Req 28 Req 2A Should the higher-quality components be used? ONo OYes

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