please answer all the parts.

A B C D E E7-8 Prepare incremental analysis concerning make-or-buy decision. Innova uses 1.000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the components are as follows: Direct materials Direct labor Overhead Total $65.00 45.00 126.50 236.50 10 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material 11 costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 12 40% fixed costs. A vendor has offered to supply the IMC2 component at a price of $200 per unit. 13 14 Instructions 15 (a) Should Innova purchase the component from the outside vendor if Innova's capacity remains idle? 16 (b) Should Innova purchase the component from the outside vendor if it can use its facilities to manufacture 17 another product? What information will Innova need to make an accurate decision? Show your calculations. 18 (c) What are the qualitative factors that Innova will have to consider when making its decision? 19 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 20 23. (a) Should Innova purchase the component from the outside vendor if Innova's capacity remains idle? Net income Make IMC2 Buy IMC2 Increase (Decrease) Direct materials Value Value Value Direct labor Value Value Value Material handling Value Value Value Variable overhead costs Value Value Value 37.5 E7- 8 E7-10 87.11 7-15 | 28 Ready File Home Insert Page Layout Formulas Data Review View HelpDYMO Label QuickBooks AS9 : x fix 23 (a) Should Innova purchase the component from the outside vendor if Innova's capacity remains idle? Net income Make IMC2 Buy IMC2 Increase (Decrease) Direct materials Value Value Value Direct labor Value Value Value Material handling Value Value Value Variable overhead costs Value Value Value Purchase price Value Value | Value Total unit cost Response: 39(b) Should Innova purchase the component from the outside vendor if it can use its facilities to manufacture another product? What information will Innova need to make an accurate decision? Show your calculations. Response: 67.5 E7- 8 67-10 E7-11 Ready 7-15 Save of Excel TemplateAssignment_Ch07 (1) - Excel Search Home Insert Page Layout Formulas Data Review View Help DYMO Label QuickBooks A B C D E Should Innova purchase the component from the outside vendor if it can use its facilities to manufacture another product? What information will Innova need to make an accurate decision? Show your calculations. Response: ) What are the qualitative factors that Innova will have to consider when making its decision? Response: Assume that unit cost for direct materials changed to $68.00 and that overhead costs changed to $130.00. What impact do these changes have on the make-or-buy decision? | 87.5 E7-8 E7-10 E7-11 E7-15 |