Polo Enterprises manufactures one of the components used to assomble its main company product. Specialty Products, Inc, has offered to make the component at a cost of $12.30 per unit. Polo Enterprises' current cost is $14.25 per unt of the component, based on the 125,000 components that Polo Enterpnses currently produces. This current cost per unit is based on the folowing calculations: Vow the information None of Polo 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 $34,000 of contribution margin per year. Read the reovirements. Requirement 1. If Polo Enterprises outsources the manufacturing of the component, wil cpecating hcome increase or dectease? By how much? (Enter a "O" for any zero balances. Use a minus sign or parentheses in the Diference column when the cost to make exceeds the cost to buy) Information Requirements 1. If Polo Enterprises outsources the manulacturing of the component, will operaling income increase or decrease? By how much? \begin{tabular}{|c|c|} \hline Direct material per unit ................ $ & 525 \\ \hline Direct labor per unit . . . . . . . . . . . . . & 6.25 \\ \hline Variable manufacturing everhead per unit ... & 125 \\ \hline Flxed manufacturing overthead per unit ... & 150 \\ \hline Total manufacturing costs per unit ... & 14.25 \\ \hline \end{tabular} 2. What is the maxmum price per unit Polo Enterprises would be wiling to pary it ig outsources the componeni