Instant Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc., has offered to make the component at a cost of $12.30 per unit Instant Enterprises current cost is $14.75 per unit of the component based on the 130,000 components that instant Enterprises currently produces Read the requirements This current cont per unit is based on the following calculations LEE (Click the loon to view the information) None of tratant Enterprise fleed costs will be eliminated if the component is outsourced. However, the fried capacity could be used to build a new product. This new product would be expected to generiate $25,000 of contribution margin per year. Requirement 1. If Instant Enterprises outsources the manufacturing of the component, wil operating income increase or decrease? By how much? (Entora "O for any zero balances. Use a minus signer parentheses in the Difference column when the cost to make exceeds the cost to buy Make Component 13.75 Outsource Component Difference Data Table Incremental Analysis Outsourcing Decision Variable costs Plus: Food costs Total cost of 130,000 components Less Profit from another product $ Dlect material per unit Direct aber per Variable manufacturing overhead per unit Fxd manufacturing overhead perunt Total manufacturing costs per unit 375 7:25 2.25 1.00 Nel cost $ 14.75 Instant Enterprises outsources the manufacturing of the component operating income wil by $ Requirement 2. What is the maximum price par unit Instant Enterprises would be willing to pay it outsouross the component Begin by identifying the basic formula that is used to determine the indifferent cutsourcing cost der unt Print Done Enterprises manufactures one of a components used to assemble its main company product Specialty Products, Inc, has offered to make the component at a cost of $12.30 per unit Instant Enterprises current cost is $14.76 per unit of the component based on the 130,000 components that instant Enterprises currently produces Read the requirements This current cost per unit is based on the following calculation (Click the loon to view the information) None of Instant Enterprises fixed costs will be eliminated the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generale $25,000 of contribution margin per year. 13.75 Variable costs PlusFixed costs Total cost of 130,000 components Los: Profit from another product Net.com Data Table 3.78 7.75 Instal Enterprises outsources the manufacturing of the component operating income wil by Requirement 2. What is the maximum price per unit instant Enterprises would be willing to pay it outsources the component Begin by identifying the basic formula that is used to determine the indiferent outsourcing cost per unit Cotif making 130.000 .components Costir outrourong 130,000 componen Variable costs - Fred costs Variable costs Flued costs Using the basic formula you determined above solve for the indifferent outsourcing cost perunt. (Round your answer to the nearest The maximum price per il tratant Enterprises would be willing to pay for the componentes Direct material per un Director per un Variable manufacturing overhead per unit Fleed manufacturing overhead peroni Total manufacturing costs per 2.25 1.09 $ 14.75 Print Done por unit Choose from any lat or enter any number in the input fields and then contiene to the next