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Innovative Automation Corporation is currently manufacturing a part that goes into its main product. Each year 5 , 1 0 0 of these parts are

Innovative Automation Corporation is currently manufacturing a part that goes into its main product. Each year 5,100 of these parts are
used. Cost data for the past year that relates to the 5,100 parts are given below. Fixed costs are allocsted on the basis of direct labor
hours. An outside compsny has offered to supply the part for $50.10 per unit, plus a shipping charge of $5.10 per unit. The plant now
used by Innovative Automation Corporation to manufacture the part would not be used to capacity within the foreseeable future if the
part is purchased outside.Direct materials $ $158,1ee
Direct labor 107,100
Variable overhead costs 10,710
Fixed ovcrhcad costs 25,50eRequired:
Prepare an analysis comparing the unit cost of manufacturing the part with the unit cost of purchasing it.
Analyze:
What is the highest cost that the company should consider paying for the part in an outside purchase?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Prepare an analysis comparing the unit cost of manufacturing the part with the unit cost of purchasing it.(Round final answers
to 2 decimal places. Enter all values as positive value.)
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