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Required Information [The following information applles to the questions displayed below.] Data for Hermann Corporation are shown below: Flxed expenses are $75,000 per month and
Required Information [The following information applles to the questions displayed below.] Data for Hermann Corporation are shown below: Flxed expenses are $75,000 per month and the company is selling 4,000 unlts per month. -a. Refer to the original data. How much will net operating income Increase (decrease) per month if the company uses higher-qualit) omponents that Increase the varlable expense by $4 per unlt and Increase unit sales by 25%. -b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $4 per unit and increase unit sales by 25%
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