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please answer Req 2A and Req 2B

Data for Hermann Corporation are shown below: Per Unit $135 Percent of Sales 1001 Selling price Variable expenses Contribution margin Fixed expenses are $87,000 per month and the company is selling 2,900 units per month 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 ZA Reg 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 Data for Hermann Corporation are shown below: Percent of Sales Per Unit 100% Selling price Variable expenses Contribution margin 40 Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. 2-0. 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. Reg 2A Reg 28 Should the higher-quality components be used? Oros ONO ( Req2A Reg 23

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