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Sunland Company manufactured 5,640 units of a component part that is used in its product and incurred the following costs: $ 32,900 14,100 Direct materials

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Sunland Company manufactured 5,640 units of a component part that is used in its product and incurred the following costs: $ 32,900 14,100 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 9,400 18,800 $ 75,200 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, Sunland Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $ 20,680. Prepare an incremental analysis report for Sunland Company which can serve as informational input into this make or buy decision (Enter negative amounts using either a negative sign preceding the number e.s. - 45 or parentheses e.g. (45). Do not leave any field blank. Enter o for the amounts.) Make Buy Increase (Decrease VA $ Variable Manufacturing Overhead Purchase Price Total Cost Direct Labor Direct Materials Opportunity Cost Fixed Manufacturing Overhead Total Annual Cost $

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