Question: Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LOS-4] [The following information applies to the questions displayed below]

Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LOS-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. Percent Per Unit of Sales Selling price $135 100% Variable expenses 81 60 Contribution margin $ 54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Exercise 5-5 (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-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 28 Refer to the original data. How much will net operatie income increase (decrease) per month if the company uses higher-quality components that increase the variable evnense by $5 per unit and increase unit sales by 20%. Net operating income by Req ZA Req 2B > Show essA Ch 15 Part 2 of 2 0.5 points eBook Hint Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 135 100% 81 60 $ 54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. Print Reference Exercise 5-5 (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-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 Riq 2B Should the higher-quality components be used? OYes ONO Check my wom

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