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< Lab 4 WP Lab 4 Question 6 of 10 < > Course Hero education.wiley.com +88 WP NWP Assessment Player Ul Application Dua Lipa, Calvin Harris, Coldplay, Martin Garrix & Kygo,... - / 0.5 Bridgeport Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 12,000 units of subcomponent JXY per month. Direct materials costs $41,000 Direct labour costs 31,900 Variable overhead 17,200 Fixed overhead* 12,700 *Fixed overhead includes $5,300 supervisor's salary. International Firm agrees to supply Bridgeport with 12,000 units per month for a total cost of $135,300. If subcomponent JXY is outsourced, Bridgeport will be able to increase the production and sales of its final product by 1,180 units per month; the product is sold for $115 per unit and its average variable costs per unit are $85. 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 e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Make Increm Cos Buy (Savir
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