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Genent's Engine Company manfactures part 1456 used in several of its engine models. Monthly production costs for 1070 units are as follows: Directa Verhed Funderace

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Genent's Engine Company manfactures part 1456 used in several of its engine models. Monthly production costs for 1070 units are as follows: Directa Verhed Funderace 2500 20 It is estimated that of the fixed overhead consigned to T456 will no longer be incurred if the company purchases T4S6 from the outside supplier Gener's Engine Company has the option of purchasing the part from an outside supplier a 94.75 per unit Genent's Engine Company purchases 1070 T456 parts from the outside supplier per month, then its monthly operating income wil decrease by 532,433 decrease by $21,783 increase by 532,483 increase by $21,700

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