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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation...

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Accounting

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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $140 91 $ 49 Percent of Sales 100% 65 35 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. Reg 2A Req 2B 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 $6 per unit and increase unit sales by 20% Net operating income by decreases 480

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