lake me to the tex Ealk Company is currently manufacturing Part P106. It produces 51,600 units of Part P106 per year. This part is usted in the manufacturing of many products produced by Balk. The breakdown of the cost per unit for Plob is shown below. The fored overhead cost (at 51 oo/unit obove) would still remain with the compary even if talk stops manufactuting Part P106. An outside supplier has otfered to sell the same part to Baik lor S12.00. Currently, thete is no altemathe use for the capital assets used to prodoce Part P106. These capital assets will not be sold if the company chooses to buy PartP106 Do oot enter dollar sigos or commas in the in out boves Wset the negative sign for a negative change in operating income a) Should Bak Company make or buy Port Pro6? Cost to Make: 1 Cost to tuys 1 Therefore Baik should: b) What is the maximum onice Balk should be willing to pay an outside supplier for the part? Maximum Prices 5 C) If Balk byys the part for 513 iestead of making it, by how much will operating incorne increase or decrease? Change in operating income