Question: 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

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: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 90 100% 63 70 $ 27 301 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Exercise 6-5 Part 2 2-a. Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 2-b. Should the higher-quality components be used? 10%. 2-a. Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 2-b. Should the higher-quality components be used? 10% Complete this question by entering your answers in the tabs below. Req 2A Req 281 Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%. Net operating income Req2A Req 28>

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