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Ivanhoe Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,600 units of

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Ivanhoe Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,600 units of subcomponent jY per month. "Fixed overhead includes $4,100 supervisor's salary. International Firm agrees to supply IVanhoe with 11,600 units per month for a total cost of $132,750. If subcomponent JXY is outsourced, Ivanhoe will be able to increase the production and sales of its final product by 1,050 units per month, the product is sold for $105 per unit and its average variable costs per unit are $70. The supervisor's salary will be eliminated if subcomponent JXY is outsourced. (a) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number es 15,000 or parenthesis, eg (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number es. 15,000 or parenthesis, eg. (15,000). While aiternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)

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