Question: Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 80 44 $36 Percent of Sales 100% 55 454

Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 80 44 $36 Percent of Sales 100% 55 454 Fixed expenses are $76,000 per month and the company is selling 2,500 units per month es 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 20% 2-b. Should the higher quality components be used

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