[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 90 100% Variable expenses 63 70% Contribution margin $ 27 30% Fixed expenses are $78,000 per month and the company is selling 3,500 units per month.

2-a. Refer to the original data above. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 20% per month. Calculate the change in total contribution margin

. 2-b. Should the higher-quality components be used? Yes or No