question 1

Data for Hermann Corporation are shown below: Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qualit) components that increase the variable expense by $5 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $5 per unit and increase unit sales by 15%