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Turnington Company is currently manufacturing Part P126. It produces 45,500 units of Part P126 per year. This part is used in the manufacturing of ma

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Turnington Company is currently manufacturing Part P126. It produces 45,500 units of Part P126 per year. This part is used in the manufacturing of ma products produced by Turnington. The breakdown of the cost per unit for P126 is shown below. The fixed overhead cost (at $2.50 /unit above) would still remain with the company even if Turnington stops manufacturing Part P126. An outside supplier has offered to sell the same part to Turnington for $15.00. Currently, there is no alternative use for the capital assets used to produce Part P126. These capital assets will not be sold if the company chooses to buy Part P126. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should Turnington Company make or buy Part P126? Cost to Make: Cost to Buy: $ Therefore Turnington should: b) What is the maximum price Turnington should be willing to pay an outside supplier for the part? Maximum Price: c) If Turnington buys the part for $7 instead of making it, by how much will operating income increase or decrease? Change in operating income: $

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