Nesbit Enterprises manutactures one of the components used to assemble its main compary product Specialty Products, inc, has offened io moke the component at a cost of $1240 per unit. Nesbitt Enterprises current cost is $14.25 per unit of the component. based on the 110,000 componems that Nesbatt Enterprises cunently produces. Read the reouremerits This cument cost per unt is based on the following calculations. Click the icon to vew the information) None of Nesbet Enterprises fixed costs wil be eliminaced if the component is cutsourced. However, the freed capacity could be used to buld a new prodict. This new product would be expected to generate $28,000 of contrbution margin per Requirements 1. If Nesbitt Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Nesbitt Enterprises would be willing to pay if it outsources the component? Data table ck the icon Nesbitt Ent ced. Howeve duct would increase or Nesbit Enterposes manufactures one of the components used to assemble its man company product. Specialiy Products, inc, fas oflered to make the coomponent at a cost of $1240 per und. Nesbit Enterprises' cutrent cost is $1425 per unt of the component. based on the 110,000 components that Nesbat Enterprises currently produces. Read the gegurements Thes curent cost por unt is bused on the following calculations: (Cick the icon to view the viformation) None of Nesbit Enterpnses' fixed costs wil be eliminated if the component is outsourced Howowec, the filed capacity could be used to buald a new product, This new prodict would be expected to generate $20,000 of contrbution margn per Nut cost Begriby dentityng the basic formula that is used to desetm ne the indtferen cutsoucing cost per und Colt if mating itb dco comperivents