Concordia: Hanagerial Accounting (COMM 305 RACCO 240) STANDARD VIEW PRINTER VERSION BACK NEXT Exercise 7.11ac Montel Firm is considering whether to outsource the manufact ccounting department provides the following cost information for manufacturing 11.000 units of subcomponent IXY per month Direct materials costs Direct labour costs Variable overhead Food overhead $40,300 30.900 14,800 13,800 *Fixed overhead includes $4.100 supervisor's salary International agrees to supply Montal with 11,000 uniti per month for a total cost of $150,000 If subcomponent IXY is outsourced Monte will be able to increase the production and sales of its final product by 1, 150 units per month the product is sold for $120 per unit and its average variable costs per unit are $70. The supervisor's salary will be eliminated if subcomponent IXV is outsourced Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the increvital costs then enter with a negative impacting the number eg.-15,000 or parenthesis, (75000) Incremental Make Based on your analysis, what decision should management make if they were to the units JXY as it would cost an additional Management should decide to Would the decision be afferent If Montel has the opportunity to product and sel 2.500 units with the facilities currently being used to manufacture subcomponent XY