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Grey Industries makes a special-purpose machine used in the textile industry. The machine has been regarded as a superior machine, which requires 30 units of

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Grey Industries makes a special-purpose machine used in the textile industry. The machine has been regarded as a superior machine, which requires 30 units of part QK15 each month. The cost of manufacturing one unit of QK15 is the following Direct materia $ 14,200 Material handling (20% of material cost) 2,840 Direct labor 18,500 Manufacturing overhead (150% of direct labor 27.750 Total manufacturing cost 63,290 *60% of manufacturing overhead is fixed Material handling represents the direct variable costs that are incurred in the Receiving Department for handling direct materials and purchased parts; this is a separate charge in addition to manufacturing overhead. Material handling costs depend on the costs of materials or purchased parts Andy Supply, one of Grey Industries reliable vendors, has offered to supply part QK15 at a unit price of $41,500 $ REQUIRED: Please copy and paste the chart with three requirements into the answer section and enter the final answer for each requirement in the chart. Show all calculations and use tables to better present quantitative analyses. 1. Grey Industries purchases the QK15 units from Andy, the capacity Grey Industries used to manufacture these parts would be idle. Should Grey Industries decide to purchase the parts from Andy Supply, by what amount would the unit cost of QK15 increase for decrease) ANSWER 2. Assume Grey Industries is able to rent out all its idle capacity for $102,000 per month. If Grey Industries decides to purchase the 30 units from Andy Supply, by what amount would Grey's monthly cost for QK15 increase for decrease) ? ANSWER: 3. Identify two non-financial factors that Grey Industries should evaluate before making the make or buy decision

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