Question: Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] (The following information applies to the questions displayed below.)

 Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs,

Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Fixed expenses are $80,000 per month and the company is selling 3,700 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-quality components that increase the variable expense by $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below

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