3 Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LOG-4] [The following information applies to the questions displayed below. ] Part 2 of 2 . . Data for Hermann Corporation are shown below. Percent 1 Per Unit of Sales . Selling price $ 80 100% points Variable expenses 52 65 Contribution margin $ 28 35% e] Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. eBook :19: Exercise 6-5 (Algo) Part 2 In 15 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality Prim components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? References Complete this question by entering your answers in the tabs below. Req 2A Req ZB 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 25%. Neemmeeeeee-neee _l- 3 Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LOG-4] [The following information applies to the questions displayed below. ] Part 2 of 2 . . Data for Hermann Corporation are shown below. Percent 1 Per Unit of Sales . Selling price $ 80 100% pomts Variable expenses 52 65 Contribution margin $ 28 35% E] Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. eBook 9 Exercise 6-5 (Algo) Part 2 In 13 2-a. Refer to the original data. How much will net operating income increase (decrease) per month ifthe company uses higherqua|ity PM components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2b. Should the higher-quality components be used? References Complete this question by entering your answers in the tabs below. Req 2A Should the higherquality components be used? C9 Ill % _<__t> Exercise 6-6 (Algo) Break-Even Analysis [L06-5] 1 Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $11 per points unit. The company's monthly fixed expense is $7,200. Required: 1. Calculate the company's break-even point in unit sales. El 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) EBk 3. If the company's fixed expenses increase by $600, what would become the new breakeven point in unit sales? In dollar sales? (Do not round intermediate calculations.) Him 1. Break-even point in unit sales baskets _ 2. Break-even point in dollar sales 3 3. Break-even point in unit sales baskets rm 3. Break-even point in dollar sales Ti Refe re n ces