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tlens Martinez ise managerial accountant at Pabel Corporation Fabec is under intense cost competition, and Martines was asked to evaluate whether Pubec should continue
tlens Martinez ise managerial accountant at Pabel Corporation Fabec is under intense cost competition, and Martines was asked to evaluate whether Pubec should continue to manufacture part HT-RF or purchase it from Marley Company in 2022 Marley had submitted a bid to supply the 35,000 MT-P unds that Paibec needs for 2022 at a price of $15.00 each From 2021 plant records and interviews with Janice Lis, the plant manager, Martinez gathered the following information regarding Pabec's costs to manufacture 31,000 units of MT-7 in 2021 Direct materials Direct labor Plant space rental Equipment lease [feed] Other overhead Variable $210,800 155,000 94,000 34,000 103,230 Total 126.170 $723,200 Uu also told her that if MT-RF was not purchased from Mariey, erect material and direct uber costs per unit were more likely to be higher in 2022 by 8% and 5%, respectively MT-AF was purchased from Marles, $20,000 of the fixed overhead costs could be saved. HT AF was purchased from Martes, pant space will not have to be rented, and equipment will not have to be inased, but it will cost $10,000 and $4,500, respectively, to terminate the two contras Martiner estimated that 35,000 units of MT-R would be needed in 2022. REQUIRED (ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES) If MT-RF was purchased from Marley in 2022, what would be the effect on Partec's profits? (Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number
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