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3 PT Alya faces a dilemma whether to make or buy some of its components for the phone it produces. The cost of producing 200,000

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3 PT Alya faces a dilemma whether to make or buy some of its components for the phone it produces. The cost of producing 200,000 microchip for its phone are in the following table. Direct Materials Direct labor $110.000 Variable Overhead $30.000 Fixed Overhead $36.000 $30.000 Instead of making the electrical cords at an average cost per unit of $1.3 ($206,000/200,000), the company has an opportunity to buy the cords at $1 per unit. If the company purchases the cords, all variable costs and one-fifth of the fixed costs are eliminated. a. Prepare an incremental analysis showing whether the company should make or buy the microchip? Net Income Increase (Decrease) Make Buy (write your opinion whether Alya should buy or make the microchip) b If buying from suppliers means that Alya could generate $60,000 additional income, what options should Alya take based on incremental Analysis? Net Income Increase (Decrease) Make Buy (write your opinion whether Alya should buy or make the microchip based on the new into)

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