Part 1 of 4 Nesbit Enterprises manufactures one of the components seed to assemble its main company product. Specialy Products, Inc., has offered to make the component at a cost of $13.20 per unit. Nesbitt Enterprises cument cost is 13.25 per unit of the component, based on the 115.000 components that Nesbitt Enterprises currently produces Read the mouirements HW Score: 5.30%, 3.38 of 6 points O Points: 0 of 1 This curent cost per unit is based on the folowing caculations (Click the icon to vime the information Seve None of Nesbit Enterprises' bead cos wil be sited the components outsourced Homer the fo capauty could be used to build a new product This new product would be expected to peer $35.000 contution margin per year Requirement 1. Nesbitt Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (mara for any sight column when the cost to make exceeds the cost to buy) Incremental Analysis Outsourcing Decision Variable costs Plus: Fixed costs Total cost of 115,000 components Less: Proft from another product Not cost Get more help Make Component Outsource Component Difference Requirements 1. Nebi Eras outsources the manufacturing of the component will operating inme increase or decrease? By how much? 2. What is the maximum price per un Nest Enterpses would be wing to pay if it outsources the component Print Done Data table Direct material per unit.... 420 Direct isbor ger unit 575 Variable manufacturing overhead per unit. 225 100 Fixed manufacturing overhead per unit Total manufacturing costs per un $1325 Print Done X Clear all Check answer