Question: Data for Chocolate Corporation are shown below: Per Unit Percent of Sales Selling price $ 135 100 % Variable expenses 81 60 Contribution margin $

Data for Chocolate Corporation are shown below:

Per Unit Percent of Sales
Selling price $ 135 100 %
Variable expenses 81 60
Contribution margin $ 54 40 %

Fixed expenses are $87,000 per month and the company is selling 2,900 units per month.

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 20%.

Net Operating Income increases/decreases by ________

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