Data for Hermann Corporation are shown below:

Per Unit Percent of Sales

Selling Price $$70100\%$

Variable expenses $4070\%$

Contribution margin $$2130\%$

Fixed expenses are $$74000$ per month and the company is selling $4400$ units per month.

Required:

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 $25\%.$ Should the higher$-$quality components be used?