Innova uses $1,000$ units of the component IMC$2$ every month to manufacture one of its products.

The unit costs incurred to manufacture the component are as follows.

Direct materials $$62\mathrm{.}18$

Direct labor $37\mathrm{.}57$

Overhead $126\mathrm{.}50$

Total $$226\mathrm{.}25$Innova uses $1,000$ units of the component IMC$2$ every month to manufacture one of its products. The unit costs incurred to

manufacture the component are as follows.

Overhead costs include variable material handling costs of $$6\mathrm{.}50,$ which are applied to products on the basis of direct material costs

The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of $60\mathrm{.}00\%$ variable costs and $40\mathrm{.}00\%$

fixed costs.

A vendor has offered to supply the IMC$2$ component at a price of $$250\mathrm{.}00$ per unit.

$($a$)$

Prepare the incremental analysis for the decision to make or buy IMC$2.$ Assume that no fixed costs will be eliminated if production is

outsourced. $($Round answers to $2$ decimal places, e$.$g$.12\mathrm{.}25.$ Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$

or parentheses e$.$g$.(45).)$

Overhead costs include variable material handling costs of $$6\mathrm{.}50,$ which are applied to products

on the basis of direct material costs. The remainder of the overhead costs are applied on the basis

of direct labor dollars and consist of $60\mathrm{.}00\%$ variable costs and $40\mathrm{.}00\%$ fixed costs.

A vendor has offered to supply the IMC$2$ component at a price of $$250\mathrm{.}00$ per unit.

$($a$)$

Prepare the incremental analysis for the decision to make or buy IMC$2.$ Assume that no fixed

costs will be eliminated if production is outsourced. $($Round answersto $2$ decimal places, e$.$g$.12\mathrm{.}25.$

Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.$

$(45).)$