E8-47B (similar to) Question Help Nesbitt Enterprises manufactures one of the components used to assemble its This current cost per unit is based on the following calculations main company product Specialty Products, Inc., has offered to make the component at a cost of $12.00 per unit. Nesbitt Enterprises current cost is $15.50 Click the icon to view the information) per unit of the component based on the 90,000 components that Nesbitt None of Nesbitt Enterprises' fixed costs will be eliminated if the component is Enterprises currently produces outsourced. However, the freed capacity could be used to build a new product. Read the requirements This new product would be expected to generate $27,000 of contribution margin per year Requirement 1. ir Nesbitt Enterprises outsources the manufacturing of the component, wil operating income increase or decrease? By how much? (Enter a "O" for any zuro balances. Use a minun sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Outsource Outsourcing Decision Component Component Variable costs Make Difference Plus: Fixed costs Total cost of 90,000 components Lesa: Profit from another product Net cost i Requirements 1. If Nesbitt Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Nesbitt Enterprises would be willing to pay if it outsources the component? Print Done X Data Table 5.25 7.00 Direct material per unit.. $ Direct labor per unit Variable manufacturing overhead per unit.. Fixed manufacturing overhead per unit. $ Total manufacturing costs per unit. 0.75 2.50 15.50 Print Done