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Davey Enterprises manufactures one of the components used to assemble its main company product. Specialty Products, ine, has offered to make the component at a cost of This current coet per unit is based on the following calculationaz? $13.20 per unit. Davey Enterprises' current cost is $15.75 per unit of the component, based (Click the licon to viow the information.) on the 85,000 components that Davey Entorprises currently produces. None of Davey Enterprises' fixed costs will be eiminated if the component is outsourced. Read the toguirements However, the freed capacity could be usod to bulid a new product. This neis product would be expected to generate $35.000 of contribution margin per yeav. tign or parentheses in the Dilference column when the cost to make exceeds the cost to buy) Davey Enterprises manufactures one of the components used to assemble its main company product. Specialty Products, Inc., has offered to make the component at a cost of $13.20 per unit. Davey Enterprises' current cost is $15.75 per unit of the component, based on the 85,000 components that Davey Enterprises currently produces. Read the reguirements. None of Davey Enterprises" However, the freed capacily expected to generate $35.00 Requirement 1. If Davey Enterprises outsources the manufacturing of the component, will operating income increase or decrease sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) vents used to assemble its main red to make the component at a cost of This current cost per unit is based on the following calculations: 515.75 per unit of the component, based (Click the icon to view the information.) None of Davey Enterprises' fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $35,000 of contribution margin per year. he manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "0" for any zero balances. Use a minus the cost to make exceeds the cost to buy.) Requirements 1. If Davey Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Davey Enterprises would be willing to pay if it outsources the component? Data table se or decrease? By ho