Required information Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7] Skip to question [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 80 100% Variable expenses 44 55 Contribution margin $ 36 45% Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Exercise 5-7 (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 $4 per unit and increase unit sales by 20%. Net operating income _____________by _______________ 2-b. Should the higher-quality components be used? Yes or No