Question: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $100 61 $ 39 Percent of Sales 100% 61 39%


Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $100 61 $ 39 Percent of Sales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3,700 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 S3 per unit and increase unit sales by 15% 26. Should the higher quality components be used? Reg ZA Reg 28 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 $3 per unit and increase unit sales by 15%. Net operating income Reg 2A Req 28 Should the higher quality components be used? OYes ONO
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