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Make or Buy Eastside Company incurs a fotal cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased from an outside supplier for $11 per unit. A related cost study indicates that the total cost of the component includes fixed costs equal to 25% of the variable costs involved. a. Should Eastside buy the component if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis. Use negative sign represent a net disadvantage znswer; otherwise do not use negative signs with your answers. b. What would be your answer to requirement (a) if the released capacity could be used in a project that would generate $20,000 of contribution margin? Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $36 per unit. Normally, 42,000 units are sold each year. Variable unit cost data on the assembly are as follows: The company is now using only 70% of its normal capacity, it could fully use its normal capacity by processing the assembly further and selling if for 541 per unit. If the company does this, material and labor costs will each increase by 32 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $180,000. Prepare an analysis showing whether jensen should process the assemblies further. Use a negative sign with answer to only indicate a loss from processing assemblies further; otherwise do not use negative signs with your answers. Differential Analysis In each of four independent cases, the amount of differential revenue or differential cost is as follows (parentheses indicate decreases): For each case, determine the missing amount that would be necessary for the net differential amount to be: a. $8,000 Use a negative signs with answers to reflect decreases. b. ($4,000) Use a negative signs with answers to reflect decreases