co now F G H I 1 Question 1 6 points 2 Marik Company manufactured 1,200 units of a component part that is used in its product. The following information is available Sales $118,800 Direct materials 42,000 Direct labor 21,600 Variable manufacturing overhead 15,600 Fixed manufacturing overhead 16,800 Total costs 96,000 Net Income 22,800 10 Another company has offered to sell the same component part to the company for $74 per unit. 11 The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of 14 $12,000 15 Instructions 16 1. Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision. 17 2. What is an opportunity cost and why should the managers consider it when making insourcing -outsourcing decisions? 1. Your name and ID Question 1 Question 2 Question 3