Part O43 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 15,200 units of the part that are needed every year.

Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 15,200 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $2.10 $3.10 $5.90 $6.40 $7.50 $4.60 An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outsidee supplier's offer were accepted, only $21,200 of these allocated general overhead costs would be avoided Required a. Prepare a report that shows the effect on the company's total net operating income of buying part 043 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value Net operating income would be b. Which alternative should the company choose? Buy Make