Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4]...
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Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent of Sales 100% 60 40% Per Unit $ 55 Selling price Variable expenses Contribution margin $ 22 Fixed expenses are $71,000 per month and the company is selling 4,100 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used
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