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Sheridan Company manufactured 6,840 units of a component part that is used in its product and incurred the following costs: $39.900 17.100 Direct materials Direct

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Sheridan Company manufactured 6,840 units of a component part that is used in its product and incurred the following costs: $39.900 17.100 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 11,400 22,800 $91,200 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Sheridan Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $25,080. Prepare an incremental analysis report for Sheridan Company which can serve as informational Input i:o this make or buy decision (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Do not leave any field blank. Enter for the amounts.) Make Buy > >

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