Elena Martinez is a managerial accountant at Pabec Corporation. Pabec is under intense cost competition, and Martinez was asked to evaluate whether Paibec should continue to manufacture part MT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 33,000 MT-RF units that Palbec needs for 2022 at a price of $18.00 each. From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Palbec's costs to manufacture 29,000 units of MT-RF in 2021: Uu also told her that Direct materials D $145,000 7,000 Plant space rental (fixed) 94,000 Equipment lease (fixed) 32,000 Other overhead Variable Fixed Total 90,480 135,220 $564,200 MT-RF was not purchased from Marley, Grect material and direct labor costs per unit were more likely to be higher in 2022 by 9% and 4%, respectively, MT-RF was purchased from Marley, $10,000 of the fixed overhead costs could be saved. MT-RF was purchased from Marley, plant space will not have to be rected, and equipment will not have to be leased, but it will cost $7,500 and $3,000, respectively, to terminate the two contracts Martinez estimated that 33,000 units of MT-RF would be needed in 2022. REQUIRED (ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.] If MT-R was purchased from Marley in 2022, what would be the effect on Pabec's profes? (Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number] 0/5 Elena Martinez is a managerial accountant at Palbec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Paibec should continue to manufacture part MT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 33,000 MT-RF units that Paibec needs for 2022 at a price of $18.00 each. From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Paibec's costs to manufacture 29,000 units of MT-RF in 2021: Direct materials Direct labor $145,000 87,000 Plant space rental (fixed) 94,000 Equipment lease [fixed] 32,000 Other overhead Variable Fixed Total 90,480 135,720 $584,200 Liu also told her that: if MT-RF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 9% and 4%, respectively, If MT-RF was purchased from Marley, $10,000 of the fixed overhead costs could be saved. If MT-RF was purchased from Marley, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $7,500 and $3,000, respectively, to terminate the two contracts. Martinez estimated that 33,000 units of MT-RF would be needed in 2022. REQUIRED [ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.] If MT-RF was purchased from Marley in 2022, what would be the effect on Paibec's profits? [Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number.] Submit Answer Tries 0/5