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Data for Hermann Corporation are shown below:

	Per Unit	Percent of Sales
Selling price	$ 120	100%
Variable expenses	78	65
Contribution margin	$ 42	35%

Fixed expenses are $84,000 per month and the company is selling 2,600 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 $5 per unit and increase unit sales by 20%.

2-b. Should the higher-quality components be used?