Question 34 of 35 - /21 Current Attempt in Progress Bramble Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,200 units of subcomponent JXY per month. Direct materials costs $41,500 Direct labour costs 31,000 Variable overhead 16,000 Fixed overhead 13,900 Fixed overhead includes $4,800 supervisor's salary. International Firm agrees to supply Bramble with 11,200 units per month for a total cost of $137,000. If subcomponent JXY is outsourced, Bramble will be able to increase the production and sales of its final product by 1,080 units per month; the product is sold for $110 per unit and its average variable costs per unit are $75. The supervisor's salary will be eliminated if subcomponent JXY is outsourced. (a) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number eg. -15,000 or parenthesis, eg. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Incremental Costs (Savings) Make Buy $ $ $ Purchase price Direct labour Total monthly cost Fixed overhead Cost of good sold Manufacturing overhead Variable overhead Direct materials Opportunity cost Cost of good sold Manufacturing overhead