K Marco 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 $12.70 per unit Marco Enterprises' current cost is $17.50 per unit of the component, based on the 120.000 components that Marco Enterprises currently produces Read the redurements This current cost per unit is based on the following calculations (Click the icon to view the information) None of Marco 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 $26,000 of contribution margin per year. Requirement 1. If Marco Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "for any zero balances. Use a minus fan or parentheses in the Difference column when the cost to make exceeds the cost to buy) Incremental Analysis Outsourcing Decision Variable costs Plus Fixed costs Total cost of 120,000 components Less Profit from another product Not cost Make Component Outsource Component Difference