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(The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit Percent of Sales 1001 $ 70 Selling

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(The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit Percent of Sales 1001 $ 70 Selling price Variable expenses Contribution margin 70 $ 21 308 Fixed expenses are $74,000 per month and the company is selling 4,400 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

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