Edward Company currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $33.20. Edward currently produces 19,000 subcomponents at the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 13.10 10.80 5.60 3.30 $ 32.80 Required: a. If Edward has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier? b. If Edward has no alternative uses for the manufacturing capacity, what would be the maximum price per unit Edward should be willing to pay the supplier? . Now assume Edward would avoid $117,800 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier?

Edward Company currently manulactures a subcomponent that is used in its main product. A supplier has offered to supply all the Hequireat: Fom the supplier? b. If Ectward has ho afternative uses for the manufacturing capacity what wauld be the maximum price per unit fidward should be whing to bay the supplier? c. Now assume fidward wout avoid $117800 in equipment leases and sataries if the sutcomponent were purchased from the suppliet Now what wothd be the profit impact of buying from the supplier? Edward Company currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $33.20. Edward currently produces 19,000 subcomponents at the following manufacturing costs: Required: a. If Edwatd has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier? b. If Edward has no alternative uses for the manufacturing capacity, what would be the maximum price per unit Edward should be willing to pay the supplier? c. Now assume Edward would avoid $117,800 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier? Complete this question by entering your answers in the tabs below. If Edward has no aiternative uses for the manufacturing capacty, what would be the maximum price per unit Edward should be willing to pay the supplier? Note: Round your answer to 2 decimal places