i Data Table X 1 e of the co ducts, Inc nit. Colder the 120,00 bed on the followi information.) 4.50 ked costs will be el capacity could be ected to generate 7.00 Direct material per unit.. $ Direct labor per unit...... Variable manufacturing overhead per unit. Fixed manufacturing overhead per unit $ Total manufacturing costs per unit. 2.75 3.00 ses outsour parenthese 17.25 se or decrease? By buy.) co Print Done Requirements 1. If Colden Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Colden Enterprises would be willing to pay if it outsources the component? Print Done elds and then click Check Answer. Clear All Che E8-47B (similar to) Question Help Colden Enterprises manufactures one of the components used to assemble its This current cost per unit is based on the following calculations: main company product Specialty Products, Inc., has offered to make the component at a cost of $13.20 per unit Colden Enterprises' current cost is $17.25 Click the icon to view the information) per unit of the component, based on the 120,000 components that Colden None of Colden Enterprises' fixed costs will be eliminated if the component is Enterprises currently produces outsourced. However, the freed capacity could be used to build a new product. Read the commen This new product would be expected to generate $28,000 of contribution margin per year fi e Requirement 1. If Colden Enterprises outsources the manufacturing of the component will operating income increase or decrease? By how much? (Enter a "O" for au zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) o Incremental Analysis Make Outsource Outsourcing Decision Component Component Difference TE Variable costs uf: Plus: Fixed costs en Total cost of 120,000 components ti 50 Less: Profit from another product Netcost IS uti eq SO Enter any number in the edit fields and then click Check Answer bal 3 parts hufi remaining Clear All Cherken