Required information Exerclse 5.7 (Algo) Changes In Varlable Costs, Flxed Costs, Selling Prlee, and Unlt Sales [LO5-7] [The following information applles to the questions displayed below.] Data for Hermann Corporation are shown below: Flxed expenses are $79,000 per month and the company is selling 3,600 unlts per month. Exerclse 5.7 (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 varlable expense by $3 per unit and increase unit sales by 10%. 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 $3 per unit and increase unit sales by 10%
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