Innova uses 1.000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the components are as follows Direct materials Direct labor Overhead Total $65.00 45.00 126.50 236.50 Overhead costs include variable material handling costs of $6.50, 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% variable costs and 40% fixed costs. A vendor has offered to supply the IMC2 component at a price of $200 per unit. Instructions Should Innova purchase the component from the outside vendor? (a) Should Innova purchase the component from the outside vendor if Innova's capacity remains idle? Net income Increase (Decrease) Make IMC2 Buy IMC2 Direct materials Direct labor Material handling Variable overhead costs Purchase price Total unit cost Response