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[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. xercise 5-5 (Algo) Part 2 -a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality omponents that increase the variable expense by $5 per unit and increase unit sales by 15%. -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 $5 per unit and increase unit sales by 15%. Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The company's monthly fixed expense is $6,300. 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.)

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