Question: Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) (The following information applies to the questions displayed below) Data for
Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) (The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 120 1008 variable expenses 78 65 Contribution margin 5.42 358 Fixed expenses are $84,000 per month and the company is seling 2,600 units per month Exercise 5-5 (Algo) Part 2 2-a, Refer to the original data. How much will net operating Incomp increase (decrease) per month if the company uses higher quality components that increase the variable expense by $5 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 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 $5 per unit and increase unit sales by 20% Net operating income
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