Question: Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 1009 70

 Data for Hermann Corporation are shown below. Selling price Variable expenses

Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 1009 70 301 Fixed expenses are $78,000 per month and the company is selling 3,500 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 $4 per unit and increase unit sales by 20%. 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 26 Refer to the original data. How much wil net operating income increase (decrease) per month of the company uses higher quality components that increase the variable expense by $4 per unit and increase unit sales by 20% Net operating income increases by Reg 2 > S

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