Question: Hello, I need some help with the formula on what you add together for the problem below. Thank you! I think Course Hero is not
Hello, I need some help with the formula on what you add together for the problem below. Thank you! I think Course Hero is not uploading the images properly, I have provided a link to the image below: https://ibb.co/6mDPZdB
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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 110 100% Variable expenses 77 70 Contribution margin $ 33 301 Fixed expenses are $82,000 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 $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. Req 2A 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 $5 per unit and increase unit sales by 20%. Net operating income by
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