Question: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 85 100% Variable expenses 51 60 Contribution margin $ 34

Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 85 100% Variable expenses 51 60 Contribution margin $ 34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 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 20%. 2-b. Should the higher-quality components be

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