Panot Enterprises manufactures one Inc, has offered to the component, based Read the urements components used to assemble its main company product. Specialty Producks $12.00 per unit Parrot Enterprises current cost is $18.25 per unit of 0.000 components that Parrot Enterprises currently produces This current cost per unit is based on the following calculations view the information) None of Pamot Enterprises ad costs w eliminated the component is outsourced. However, the breed product. This new product would be expected to generate $33,000 of contribution margin per year. Requirement 1. Parrot Enterprises outsources the manufacturing of the component, will operating income increase or decrease when the coal to make exceeds the cost to buy) Incremental Analysis Outsourcing Decision Maka Component Outsource Component Difference Data table Variable costs Flux: Fixed costs Total cost of 80,000 components Less: Profit from another product Net cost If Parrot Enterprises outsources the manufacturing of the component, operating income wi Requirement 2. What is the maximum price per unit Pamot Enterprises would be willing to pay it outsources the component Begin by identifying the basic formula that is used to determine the indiferent per unt Cost if outsourcing 80,000 components Cost if making 80,000 components Lisine the basic formde ou determined to solve for the indie Direct material per unit 4.25 Direct labor per unit 7.75 Variable manufacturing overhead per unit 275 3.50 Feed manufacturing overhead per Total manufacturing costs per unit. 18.25 unit (Round your answer to the neatent XXX1 Print Done the Difference column Time Remaining: 01:01:40 Next