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[ The following information applies to the questions displayed below. ] Data for Hermann Corporation are shown below: Per UnitPercent of SalesSelling price$ 9 0

[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per UnitPercent of SalesSelling price$ 90100%Variable expenses6370Contribution margin$ 2730% Fixed expenses are $78,000 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 $4 per unit and increase unit sales by 20%.2-b. Should the higher-quality components be used?

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