Parrot Enterprises manufactures one of the components used to assemble its main company This current cost per unit is based on the following calculations: product. Specialty Products, Inc., has offered to make the component at a cost of $12.20 per unit. (Click the icon to view the information.) Parrot Enterprises' current cost is $17.25 per unit of the component, based on the 120,000 components that Parrot Enterprises currently produces. None of Parrot Enterprises' fixed costs will be eliminated if the component is outsourced. Read the requirements. However, the freed capacity could be used to build a new product. This new product would be expected to generate $29,000 of contribution margin per year. Requirement 1. If Parrot Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "0" for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) If Parrot Enterprises outsources the manufacturing of the component, operating income will by Requirement 2. What is the maximum price per unit Parrot Enterprises would be willing to pay if it outsources the component? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Data table Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. (Round your answer to the nearest cent, $X. XX.) The maximum price per unit Parrot Enterprises would be willing to pay if it outsources the component is per unit. Parrot Enterprises manufactures one of the components used to assemble its main company This current cost per unit is based on the following calculations: product. Specialty Products, Inc., has offered to make the component at a cost of $12.20 per unit. (Click the icon to view the information.) Parrot Enterprises' current cost is $17.25 per unit of the component, based on the 120,000 components that Parrot Enterprises currently produces. None of Parrot Enterprises' fixed costs will be eliminated if the component is outsourced. Read the requirements. However, the freed capacity could be used to build a new product. This new product would be expected to generate $29,000 of contribution margin per year. Requirement 1. If Parrot Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "0" for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) If Parrot Enterprises outsources the manufacturing of the component, operating income will by Requirement 2. What is the maximum price per unit Parrot Enterprises would be willing to pay if it outsources the component? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Data table Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. (Round your answer to the nearest cent, $X. XX.) The maximum price per unit Parrot Enterprises would be willing to pay if it outsources the component is per unit