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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

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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 $ 75 51 Percent of Sales 1004 68 324 $ 24 Fixed expenses are $75,000 per month and the company is selling 4,000 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 $4 per unit and increase unit sales by 25% 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 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 $4 per unit and increase unit sales by 25%. Netting into by Reg 28 The foowing informations to meet red below Onts for Hormann Corporation are shown below Preto Her Sales Selling price 55 Variable penses 32 Fexpenses are $75,000 per month and the company is soling 4000 units per month Required: 1. How much will net operating income increase (decreases per month it the monthly advertising budget Income by 1990, thus monthly sales volume increases ty 100 units, and the total monthly sales increase by S7500 1.b. Should the advertising budget be increased Complete this question by entering your answers in the tabs below. Heq IA Hec 13 How much will net operating incothe increase (decreaso) per month if the monthly advertising budget inches by 59.100. the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500F (Do not und ihre cantons

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