Green, Corp., estimates it will produce 60,000 units of a part that goes into its final product. It currently produces this part internally, but is considering outsourcing this activity. Current internal capacity permits for a maximum of 120,000 units of the part. The production manager has prepared the following information concerning the internal manufacture of 120,000 units of the part: E: (Click the icon to view the costs.) The fixed overhead of $3 per unit includes a $1.85 per unit allocation for salary paid to a supervisor to oversee production of the part. The fixed costs would not be reduced by outsourcing, except the supervisor would be terminated. Assume that if Green outsources, its purchase price from the outsourcer is $20 per unit. Read the requirements u Requirement 1. Should Green outsource? (Use a minus sign or parentheses to show a net incremental cost.) Data table Assume Green outsources the production of its parts Estimated operating revenues Per unit Less: Direct materials $ 6.00 Net incremental benefit (cost) Direct labor 9.00 Variable overhead 6.00 Definition Fixed overhead 3.00 $ 24.00 Total cost 1. Should Green outsource? 2. Assume Green has received a special order for 15,000 units of the part from Nantucket, Co. Nantucket will pay Green $28 per part, but will take the parts only if they have been manufactured by Green. Thus, Nantucket will engage in the special order only if Green does not outsource any of its production. Should Green accept the special order? Print Done