eBook Print Gan 2 Famaly corect Make or Buy Eastside Company incurs a total cost of $93,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased from an outside supplier for $8 per unit. A related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. Should Eastside buy the component if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers Cost from outside suppler 110,000 Variable costs avoided by purchasing 69,750x Net advantage disadvantage) to purchase alternative 10,250 b. What would be your answer to requirement (a) if the released capacity could be used in a project that would generate $32,000 of contribution margin? Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. Ces from outside supplier Variable costs avoided by purchasing 80,000 Contribution margin generated by new project Nstabarcare advantages to purchase aternatives. 21.250 x Question 2 Parity correct Mark 1.07 out of 3.75 Make or Buy PFlag question Eastside Company incurs a total cost of $93,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased t for $8 per unit. A related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. Should Eastside buy the component if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis. Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. Cost from outside supplier Variable costs avoided by purchasing 80,000 69,750 x Net advantage (disadvantage) to purchase alternative S 10.250 x b. What would be your answer to requirement (a) if the released capacity could be used in a project that would generate $32,000 of contribution margin? Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers Return to course out of 3.25 ag question 0 x G O G G Support Dashboard Usman Tahir eBook Print of $93,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased from an outside supplier dicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis. dvantage answer; otherwise do not use negative signs with your answers amanve 80,000 69,750 10,250 ement (a) if the released capacity could be used in a project that would generate $32,000 of contribution margin? antage answer; otherwise do not use negative signs with your answers. 80,000 0x