Question 34 of 35 7/21 TII View Policies Show Attempt History 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 overhe incl 64,800 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) Your answer is correct. Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number e.g.-15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Increment Costs (Savings) Make Buy $ $ 137000 $ 41500 i 31000 i 16000 i 13900 9100 37800 140200 146100 $ Attempts: 1 of 2 used (b) Based on your analysis, what decision should management make? t should decide to JXY as it would cost an additional $ if they were to Save for Later Attempts: 0 of 2 used Submit