Required information Exercise 6-5 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:

Per Unit Percent of Sales

Selling price $ 95 100 %

Variable expenses 57 60

Contribution margin $ 38 40 %

Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Exercise 6-5 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 10%. 2-b. Should the higher-quality components be used?