(Answered) Management is considering using higher quality components

Accounting

Management is considering using higher quality components that would increase the variable expense by $2 per unit. The marketing manager believes that the higher quality product would increase sales by 10% per month. Should higher quality components be used?

Selling price $90 per unit/percent of sales 100%
Variable expenses-63 per unit/percent of sales 70%
Contribution margin-$27 per unit/percent of sales 30%
Fixed expenses- $30,000 per month and the company is selling 2,000 units per month

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