(Solved): 2-a. Refer to the original data. How much will net operating income increase (decrease) per month i ...

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? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 28 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 Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5- 4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales Per Unit Selling price $ 120 100% Variable expenses 78 65 Contribution margin $ 42 359 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Exercise 5-5 (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 $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used?