Tapeo Company has always made its electronic components that go into their GPS systems in$-$house.

Streeter Company has offered to supply these electronic components at a price of $$38$ each. Tapeo uses

$18,000$ units of these components each year. The cost per unit of this component is as follows:

Assume that $45\%$ of Tapeo Company's fixed overhead would be eliminated if the electronic component

was no longer produced in$-$house.

Required:

A$.$ If Tapeo decided to purchase the electronic component from Streeter Company how much would its

operating income increase or decrease?

$

B$.$ Should Tapeo continue to make the electronic component or buy it from Streeter Company?