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16,200 Ivanhoe Company manufactured 6,480 units of a component part that is used in its product and incurred the following costs. Direct materials $ 37,800

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16,200 Ivanhoe Company manufactured 6,480 units of a component part that is used in its product and incurred the following costs. Direct materials $ 37,800 Direct labor Variable manufacturing overhead 10.800 Fleed manufacturing overhead 21,600 $ 86,400 Another company has offered to sell the same component part to the company for $ 13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside form. If the component part is purchased Tom the outside firm, Ivanhoe Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $ 23,760. Prepare an incremental analysis report for Ivanhoe Company which can serve as informational input into this make or buy decision (Enter negative amounts using either o negative sign preceding the number eg. -45 or parentheses 68. (45). Do not leave any field blank Entero for the amounts) Make Buy Increase (DC V V V $ $

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