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: Selling price Variable expense Contribution margin Percent Per Unit of Sales $90 100% 63 70 $27 30% Fixed expenses are $78,000 per month and the company is selling 3,500 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-quality components that increase the variable expense by $4 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. 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 $4 per unit and increase unit sales by 20%. Complete this question by entering your answers in the tabs below. Should the higher-quality components be used? 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 displayod below] Data for Hermann Corporation are shown below: Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. xercise 6.5 (Algo) Part 2 Refer to the originat data. How much will net operating income increase (decrease) per month if the company uses higher-quality mponents that increase the variable expense by $4 per unit and increase unit sales by 20%. 2. Should the higher-quality components be used