Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,500 units of subcomponent JXY per month.

Direct materials costs		$41,500
Direct labour costs		31,400
Variable overhead		17,300
Fixed overhead*		13,000

*Fixed overhead includes $4,300 supervisors salary. International Firm agrees to supply Montel with 11,500 units per month for a total cost of $154,500. If subcomponent JXY is outsourced, Montel will be able to increase the production and sales of its final product by 1,100 units per month; the product is sold for $115 per unit and its average variable costs per unit are $65. The supervisors 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).)
		Make		Buy		Incremental Costs (Savings)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)		$		$		$
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)
Total monthly cost- Manufacturing overhead - Purchase price - Fixed overhead - Cost of good sold - Direct materials - Opportunity cost - Direct labour - Variable overhead (Choose one of the options)		$		$		$