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22. Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 15000 units of
22. Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 15000 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $1.90 $2.90 $5.70 $6 20 $7.30 $440 An outside supplier has offered to make the part and sell to the company for $23.00 each of this offer is accepted the supervisor's salary and all of the variable costs, including direct labor can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents tixed costs the entire company the outside supplier's offer were accepted only 521 000 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the effect on the company's totalmet operating income of buying part 043 from the supplier rather than continuing to make inside company input the amount as a positive value. Omit the "S" sign in your response.) Net operating income would be Click to see Mb . Which alternative should the company chase Wake Bus
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