Selling price Variable expenses Contribution margin Per Unit $ 100 61 $ 39 Percent of Sales...

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Selling price Variable expenses Contribution margin Per Unit $ 100 61 $ 39 Percent of Sales 100% 61 398 Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 5-7 (Algo) Part 2 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 $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Required 2A Required 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 variable expense by $3 per unit and increase unit sales by 15%. Net operating income by S < Prev 8 of 15 Next > Selling price Variable expenses Contribution margin Per Unit $ 100 61 $ 39 Percent of Sales 100% 61 398 Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 5-7 (Algo) Part 2 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 $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Required 2A Required 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 variable expense by $3 per unit and increase unit sales by 15%. Net operating income by S < Prev 8 of 15 Next >

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To calculate the change in net operating income Original contribution margin per unit Selling ... View the full answer