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Innova uses 1,060 units of the component IMC2 every month to manufacture one of its products, The unit costs incurred to manufacture the component are
Innova uses 1,060 units of the component IMC2 every month to manufacture one of its products, The unit costs incurred to manufacture the component are as follows Direct materials Direct labor overhead Total $58.89 39.08 126.50 $224.47 Overhead costs indlude variable matensal handling costs of $6.75, which are applied to products on the bass of direct material costs. The remainder of the overhead costs are applied on the basis of drect lbor dolars and consst it c variable costs and 40% fixed costs. f 60% A vendor has offered to supply the TMC2 component at a price of $250 per unit. Prepare the incremental analysis for the dedision to make or buy IMC:z Net Income Increase (Decrease) Make IMC2 (per unit) Buy IMC2 (per unit) 62423.4 Direct material 6242 Direct labor 41424 Matertal handiing 7155 Variable overhead Purchase price Total unit cnst
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