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Question 1 Culver uses 1,070 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the

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Question 1 Culver uses 1,070 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component areas Direct materials $59.68 Direct labor 39.11 Overhead 126.50 Total $225.29 Overhead costs include variable material handling costs of $7.32, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of variable costs and 40% fixed costs A vendor has offered to supply the IMC2 component at a price of $200 per unit. Prepare the incremental analysis for the decision to make or buy IMC2. (I amount decreases net income then enter the amount using either a negative sin preceding the number e.g. -45 or parenthesese.. (45).) Make IMC2 (per unit) Buy IMC2 (per unit) Net Income Increase (Decrease) Direct material Direct labor Material handling Variable overhead Purchase price Total unit COB Should Culver purchase the component from the outside vendor culverapy remains Click if you would like to show Work for this question Open Show Work

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