Question: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 60 39 Percent of Sales 1000 65 $ 21
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 60 39 Percent of Sales 1000 65 $ 21 350 Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. -a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quali omponents that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-5. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 20 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 54 per unit and increase unit sales by 25%. Not operating incomo by
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