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 $13.10 per unit. Instant Enterprises' current cost is $14.75 per unit of the component, based on the 115,000 components that Instant Enterprises currently produces Read the requirements This current cost per unit is based on the follow (Click the icon to view the information) None of Instant Enterprises fixed costs will be used to build a new product. This new product Requirement 1. If Instant Enterprises outsources the manufacturing of the component will operating income increase or decrease? By how much? (Enter a "0" for any zero balanc make exceeds the cost to buy.) i Data Table Incremental Analysis Make Outsource Outsourcing Decision Component Component Difference Variable costs Direct material per unit Plus: Fixed costs Direct labor per unit Total cost of 115,000 components Variable manufacturing ov Fixed manufacturing over Less: Profit from another product Net cost Total manufacturing cost If Instant Enterprises outsources the manufacturing of the component operating income will by $ 2 * Requirements Requirement 2. What is the maximum price per unit Instant Enterprises would be willing to pay if it outsources the component? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit Cost if making 115,000 components Cost of outsourcing 115,000 components 1. If Instant Enterprises outsources operating income increase or de 2. What is the maximum price per pay if it outsources the compone Choose from any list or enter any number in the input fields and then continue to the next question. Question Help to assemble its main company product Specialty Products, Inc. . Instant Enterprises' current cost is $14.75 per unit of the terprises currently produces This current cost per unit is based on the following calculations (Click the icon to view the information) None of Instant Enterprises' fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $25,000 of contribution margin per year. turing of the component, will operating income increase or decrease? By how much? (Enter a "O for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to Data Table Outsource Component Difference Direct material per unit Direct labor per unit Vanable manufacturing overhead per unit 575 7.00 0.50 150 Fixed manufacturing overhead per unit 14.75 Total manufacturing costs per unit ponent, operating income will bys Requirements nterprises would be willing to pay if it outsources the component? e the indifferent outsourcing cost per unit. Cost if outsourcing 115,000 components I Instant Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? What is the maximum price per unit Instant Enterprises would be willing to pay if it outsources the component? s and then continue to the next