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Ivanhoe Company manufactured 5,160 units of a component part that is used in its product and incurred the following costs: $ 30,100 12.900 Direct materials

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Ivanhoe Company manufactured 5,160 units of a component part that is used in its product and incurred the following costs: $ 30,100 12.900 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 8,600 17,200 $ 68,800 Another company has offered to sell the same component part to the company for $ 13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Ivanhoe Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $ 18,920. Prepare an incremental analysis report for Ivanhoe Company which can serve as informational input into this make or buy decision (Enter negative amounts using either a negative sign preceding the number es. 45 or parentheses e... (45). Do not leave any field blank. Enter for the amounts.) Make Buy Increase (Decrease) $ $ Prepare an incremental analysis report for Ivanhoe Company which can serve as informational input into this make or buy decision (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) Make Buy Increase (Decrease) $ $ $ S $

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