Data for Hermann Corporation are shown below: Percent of Sales Per Unit $ 105 Selling price...

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Data for Hermann Corporation are shown below: Percent of Sales Per Unit $ 105 Selling price Variable expenses 100% 63 60 Contribution margin $ 42 40% Fixed expenses are $81,000 per month and the company is selling 3,800 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? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 varlable expense by $4 per unit and Increase unit sales by 20%. Net operating income increases by < Reg 2A Req 2B > Data for Hermann Corporation are shown below: Percent of Sales Per Unit $ 105 Selling price Variable expenses 100% 63 60 Contribution margin $ 42 40% Fixed expenses are $81,000 per month and the company is selling 3,800 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? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 varlable expense by $4 per unit and Increase unit sales by 20%. Net operating income increases by < Reg 2A Req 2B >

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Percent of Per Units Sales Selling Price Varaible Cost Cont... View the full answer