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need help on this worksheet. Thank you I [Activity # 5: MAKE 0R BUY (Outsourcing): 1.Neta Company currently manufactures a subcomponent that is used in

need help on this worksheet. Thank you

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I [Activity # 5: MAKE 0R BUY (Outsourcing): 1.Neta Company currently manufactures a subcomponent that is used in its main product. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials $3 Direct labor Variable manufacturing overhead Fixed manufacturing overhead _ Total cost $14 The fixed overhead costs are unavoidable. Answer each of the below independently. Refer back to the cost table above to do so. a. Jacob Company has offered to sell 5,000 units of the same part to Neta Company for $13 per unit. Assuming the company has no other use for its facilities, what should Neta Company do? b. Assuming no other use for its facilities, what is the highest price per unit that Neta Company should be willing to pay for the part? 0. Assuming Neta Company can purchase 5,000 units of the part from Courtney Company for $15 each, and the facilities currently used to make the part could be rented out to another manufacturer for $20,000 a year, what should Neta Company do? d. Assume Neta Company can purchase 5,000 units of the part from Vivian Company for $14 each, and the facilities currently used to make the part could be used to manufacture 5,000 units of another product that would have a $5 per unit contribution margin. If no additional xed costs would be incurred, what should Neta Company do

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