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Bak Company is currently manufacturing Part P140. It produces 58,600 units of Part 140 per year. This part is used in the manufacturing of many

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Bak Company is currently manufacturing Part P140. It produces 58,600 units of Part 140 per year. This part is used in the manufacturing of many products produced by Bak. The breakdown of the cost per unit for P140 is shown below. Direct Materials $450 Direct Labor $6.00 Variable Overhead 55.50 Foed Overhead 53.00 Unit Cost $19.00 The foed overhead cost at $3.00/unit above would still remain with the company even if Balk stops manufacturing Part P140. An outs de supplier has offered to sell the same part to Balk for $19.00 Currently, there is no alternative use for the capital assets used to produce Part 140. These capital assets will not be sold if the company chooses to buy Part P140 Dorotected cons or commas in the routboxes Use the reative ion for a negative change in cerating income * Should Be Company make or buy Part 1401 Cost to Me Cont to buy Therefore Bakshould b) What is the maximum price Balk should be willing to pay an outside supplier for the part Maximum Prices Ik buys the art for 57 instead of making it by how much wil operating income increase or decrease Change in operating income

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