Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [L06-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 70 Per Unit $110 77 $ 33 Selling price Variable expenses Contribution margin 30% Fixed expenses are $82,000 per month and the company is selling 3,500 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 $5 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. Req 2A Req 2B 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 $5 per unit and increase unit sales by 20%. Net operating income by Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yes lo No Req 2A Req 23 ) Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $6,600. Required: 1. Calculate the company's break-even point in unit sales 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales Break-even point in unit sales Break-even point in dollar sales 3. baskets Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $32,400. Required: 1. Calculate the unit sales needed to attain a target profit of $5,000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,400. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales to attain target profit Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 29 $ 13 $ 13, 120 970 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage