Take me to the text Balk Company is currently manufacturing Part P127. It produces 48,500 units of Part P127 per year. This part is used in the manufacturing of many products produced by Balk. The breakdown of the cost per unit for P127 is shown below. Direct Materials $1.50 Direct Labor $1.50 Variable Overhead $2.50 Fixed Overhead $6.50 Unit Cost $12.00 The fixed overhead cost (at $6.50/unit above) would still remain with the company even if Balk stops manufacturing Part P127. An outside supplier has offered to sell the same part to Balk for $19.00. Currently, there is no alternative use for the capital assets used to produce Part P127. These capital assets will not be sold if the company chooses to buy Part P127 Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should Balk Company make or buy Part P127? Cost to Make: $ Cost to Buy: 5 Therefore Balk should: Make b) What is the maximum price Balk should be willing to pay an outside supplier for the part? Maximum Price: $ c) If Balk buys the part for $10 instead of making it, by how much will operating income increase or decrease? Change in operating income: $ Check