also: would the decision be different if Montel has the opportunity to produce and sell 2500 units with the facilities currently being used to manufacture subcomponent JXY?

Exercise 7.31 - Montel Firm is considering whether to outsource the manufacture of subcomponent IXY. The accounting departinant provides the following cost information for manufacturing 11,000 units of subcomponent XY per month Direct materials costs Direct labour costs Variable overhead Fixed overhead $40,300 30.900 14,000 13,800 Fixed overhead includes 54.100 supervisor's salary International agrees to supply Montel with 11.000 units per month for a total cost of 51560 Xi product is sold for $120 per unit and its average variable costs per unitare $70. The Supervisor's salary will be eliminated t e d Mone will be able to increase the production and sales of its final product by 1,150 units per month, the subcomponent IXY is outsourced Prepare an incremental analysis for subcomponenty (an amount reduces the incremental costs then enter with a n ative sin preceding the number 5,000 or parenthesis (15,000).) Incremental Make (Savings) Buy 11000 151600 40300 Direct labour Variable overhead Faxovad Total anual cost Masturing overtad the valamualcos Faced overhead 1 Variable head Cost of your wold e 4000 or they were to buy xy as it would cost an additional s s that currently begato W e decision temeritas the opportunity to proce