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[The jollowing information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit

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[The jollowing information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $115 Percent of Sales 100% 69 60 $ 46 40% 4 Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Check my w 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 15%. 2-b. Should the higher-quality components be used?

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