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ThatDudeLv1
11 Jul 2022
Required information
(The following information applies to the questions displayed below)
Data for Hermann Corporation are shown below:
Per unit Percentage of Sales
Selling price $75 100%
Variable expenses 51 68
Contribution margin $24 32%
Fixed expenses are $75.000 per month and the company is selling 4,000 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 $4 per unit and increase unit sales by 25%.
2-b. Should the higher-quality components be used?
Complete this question by entering your answers in the tabs below.
Req 2A
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%.
Net operating income _____ by _____ %
Required information
(The following information applies to the questions displayed below)
Data for Hermann Corporation are shown below:
Per unit Percentage of Sales
Selling price $75 100%
Variable expenses 51 68
Contribution margin $24 32%
Fixed expenses are $75.000 per month and the company is selling 4,000 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 $4 per unit and increase unit sales by 25%.
2-b. Should the higher-quality components be used?
Complete this question by entering your answers in the tabs below.
Req 2A
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%.
Net operating income _____ by _____ %
annyong558Lv10
25 Nov 2023
learn4lifeLv10
12 Jul 2022
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