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I. 20 POINTS 20 - 49 Incremental Analysis part that is used in its product and 19 7 8,000 Corso 15,000 10.000 Ex. 186 Coyle

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I. 20 POINTS 20 - 49 Incremental Analysis part that is used in its product and 19 7 8,000 Corso 15,000 10.000 Ex. 186 Coyle Company manufactured 5.000 incurred the following costs of a component part that Direct materials $35,000 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 20.000 500.000 Another company has offered to sell the same component part to the company for $13 De The fixed manufacturing overhead consists mainly of depreciation on the equipmen manufacture the part and would not be reduced if the component part was purchased outside firm. If the component part is purchased from the outside firm, Coyle Company opportunity to use the factory equipment to produce another product which is estimated contribution margin of $22,000. Instructions Prepare an incremental analysis report for Coyle Company which can serve as infom input into this make or buy decision

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