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82 Prev Question 11 Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct

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82 Prev Question 11 Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $35,000 15,000 10,000 20,000 $80,000 part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreclation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Coyle Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $22,000. Prepare an incremental analysis report for Coyle Company which can serve as informational input into this make or buy decision. (Enter negathve amounts using either a negative sign preceding t eg.-45 or parentheses e g. (45). Do not leave any field blank. Enter O for the amounts.) Make Buy Increase (Decrease) 35000 $ 35000 15000 15000

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