Question: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $75 51 $ 24 Fixed expenses are $75,000 per

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $75 51 $ 24 Fixed expenses are $75,000 per month and the company is selling 4,000 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 25%. 2-b. Should the higher-quality components be used? Req 2A Percent of Sales 100% 68 32% Complete this question by entering your answers in the tabs below. Req 2B 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%. Net operating income by

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