IE Savoy Enterprises manufactures one of the components used to assemble its main company product Specielty Products, Inc. has offered to make the component at a cost of $13.10 per unit Bevoy Enterprises ourmet at a $10.50 per unit of the component, based on the 80,000 components that Seroy Enterprises arently produces Plead the This current cost per unit is based on the following batulations (Cick the icon to view the information) Nons of Savory Enterprises' fxed coets wil be wrinated if the compa However, the freed capacity could be used to build a new product. The new pronal would be expected to generate $28.000 of consbution margin per ye Requirement 1. Savoy Enterprises uubsources the manufacturing of the component, will operating income increase or decrease? By how much rate any t sign of petes in the Deramos om when the cost to make exceeds the to-buy i Incremental Analysis Outsourcing Decision Plax Fired cont Total of 80,000 nomponents Laws Prt from another product Requirements Make Component Outsource Component Difference Svey Extens Wow PM tacting of the component, wil or dese? By now sch 1 What the per ut every Enterprises would be wing pay the component Print Done Data table Qirst material per smit Direct labor per unit Vartable manufacturing overhead per unit Fixed manufacturing overhead per una Total manufacturing eats per un Print Done 8.25 8.30 138 230 18.50 X Clear all Check ansiver