Question: hw 4 please highlight your answer i get confused. two answers , help please 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 $ 80 44 $ 36 Percent of Sales 100% 55 45% Fixed expenses are $76,000 per month and the company is selling 2,500 units per month Exercise 6-5 Part 2 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 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 $4 per unit and increase unit sales by 20% Net operating income by Req 2A Reg 2B Should the higher-quality components be used? Yes ONO
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
