Required information Exercise 5-5 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: Part 2 of2 Percent of Sales 100% 60 408 7.75/12.5 points awarded Per Unit $ 95 57 $ 38 Selling price Variable expenses Scored Contribution margin Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Exercise 5-5 Part 2 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 10% per month. Calculate the change in total contribution margin. 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. Management is considering using higher-quality components that would increase the variable expense by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 10% per month. Calculate the change in total contribution margin. I contribution increases by 1,000 Req 2A Req 2B >