Question: 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

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 10%.

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

Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $6,800 Required: 1. Calculate the company's break-even point in unit sales 2. Calculate the company's break-even point in dollar soles. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit saies? in dollar sales? (Do not round intermediate calculations.)

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