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please check my work Savoy Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc. has This current cost

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please check my work

Savoy Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc. has This current cost per unit is based on the following calculations: offered to make the component at a cost of $12.60 per unit. Savoy Enterprises' current cost is $15.50 per unit of the component, based (Click the icon to view the information.) on the 120,000 components that Savoy Enterprises currently produces. Read the requirements. None of Savoy Enterprises fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $26,000 of contribution margin per year. Requirement 1. If Savoy 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.) Make Outsource Component 12.60 Component 12 3.5 Difference (0.60) 3.5 Incremental Analysis Outsourcing Decision Variable costs Plus: Fixed costs Total cost of 120,000 components Less: Profit from another product i Data Table 1860000 1524600 335400 26000 26000 4.50 1834000 1524600 309400 5.25 Net cost Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing costs per unit 2.25 3.50 decrease by 309400 If Savoy Enterprises outsources the manufacturing of the component operating income will 15.50 Requirement 2. What is the maximum price per unit Savoy 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 Print Done Cost if making 120.000 components Variable costs - Fixed costs Cost if outsourcing 120,000 components Direct materials + Direct labor Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. (Round your answer to the nearest cent. $X.XX.) 15.28 per unit The maximum price per unit Savoy Enterprises would be willing to pay if it outsources the component is Savoy Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc. has This current cost per unit is based on the following calculations: offered to make the component at a cost of $12.60 per unit. Savoy Enterprises' current cost is $15.50 per unit of the component, based (Click the icon to view the information.) on the 120,000 components that Savoy Enterprises currently produces. Read the requirements. None of Savoy Enterprises fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $26,000 of contribution margin per year. Requirement 1. If Savoy 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.) Make Outsource Component 12.60 Component 12 3.5 Difference (0.60) 3.5 Incremental Analysis Outsourcing Decision Variable costs Plus: Fixed costs Total cost of 120,000 components Less: Profit from another product i Data Table 1860000 1524600 335400 26000 26000 4.50 1834000 1524600 309400 5.25 Net cost Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing costs per unit 2.25 3.50 decrease by 309400 If Savoy Enterprises outsources the manufacturing of the component operating income will 15.50 Requirement 2. What is the maximum price per unit Savoy 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 Print Done Cost if making 120.000 components Variable costs - Fixed costs Cost if outsourcing 120,000 components Direct materials + Direct labor Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. (Round your answer to the nearest cent. $X.XX.) 15.28 per unit The maximum price per unit Savoy Enterprises would be willing to pay if it outsources the component is

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