Nesbitt Enterprises manufactures one of the components used to assemble its main company product Specialty Products Inc. has offered to make the component at a cos! of $12 40 per unit Nesbit Enterprises current cost is $16.50 per unit of the component based on the 85.000 components that Nesbitt Enterprises currently producos Road the requitements This current cout per unit is based on the following calculations: ck the icon to view the information None of Nesbit Enterprises fixed costs will be eliminated if the components Outsourced. However, the freed capacity could be used to buid a new product This new product would be expected to generate $31,000 ot contribution margin per your Requirement 1. If Nesbitt Enterprises outsourced the manufacturing of the component, wil operating income increase or decrease? Hy how much? (Entera o for arvy 260 balances. Use a minus sign or parentheses in the Difference column when the cost to make coods the cost to buy Make Component Outsource Component Difference Incremental Analysis Outsourcing Decision Variable costs Plus Fixed costs Total cost of 85.000 components Los Profit from another product NO COST Data Table 6.00 Direct material per unit $ Direct labor per unit Variable manufacturing overhead per unit. 5.75 1.25 Fixed manufacturing overhead per unit 3.50 Total manufacturing costs per unit $ 16.50 Print Done 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