Question: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100% Variable expenses 49 70 Contribution margin $ 21

Data for Hermann Corporation are shown below:

	Per Unit	Percent of Sales
Selling price	$ 70	100%
Variable expenses	49	70
Contribution margin	$ 21	30%

Fixed expenses are $74,000 per month and the company is selling 4,400 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 $4 per unit and increase unit sales by 25%.

Net operating income increases by ?#

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