Question: ( P - 3 0 ) Data for Hermann Corporation are shown below: Fixed expenses are $ 8 1 , 0 0 0 per month

(P-30) Data for Hermann Corporation are shown below:
Fixed expenses are $81,000 per month and the company is selling 3,800 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?
(P-30) Data for Hermann Corporation are shown below: Fixed expenses are

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