Question: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 65 100% Variable expenses 39 60 Contribution margin $ 26

Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 65 100% Variable expenses 39 60 Contribution margin $ 26 40% Fixed expenses are $73,000 per month and the company is selling 4,300 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 $5 per unit and increase unit sales by 25%.

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