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Take me to the text Balk Company is currently manufacturing Part P119. It produces 52,600 units of Part P119 per year. This part is used

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Take me to the text Balk Company is currently manufacturing Part P119. It produces 52,600 units of Part P119 per year. This part is used in the manufacturing of mary products produced by Balk. The breakdown of the cost per unit for P119 is shown below. The fred overhead cost (at \$2.50/unit above) would still remain with the company even if Bsik stops manufactuning Part P119. An outside supplier has offered to sell the same part to Baik for $20.00. Currently, there is no alternative use for the capital assets used to produce Part P119. These capital assets will not be sold if the company chooses to buy Part P119. Donotenter do lilar signs or commas in the inout beaces: Use the negative sign for a negative change in onerating income a) Should Balk Company make or buy Part P119? Cost to Make: Cost to Buys 3 Therefore Balkshould: b) What is the maximum price Balk should be willing to pay an outside suppliec for the part? Maximum Price: 5 Q) If Balk buys the part for 514 instead of making it, by how much will operating income increase or decrease

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