We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for several of the parts that it currently produces. Cost information for one such machine part is given below: Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable. An outside supplier will sell the part at a price of $56 per unit if 500 units are purchased Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places.) Should the company make or buy? Make Buy Imperial Jewellers is considering a special order for 20 handcrafted gold bracelets for a wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $192.00 and its unit product cost is $165.00, as shown: The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, 20% of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $4.50 per bracelet and would also require acquisition of a special tool costing $330 that would have no other use once the special order was completed This order would have no effect on the company's regular sales, and the order could be fulfiled using the company's existing capacity without affecting any other order. What effect would accepting this order have on the company's net operating income if a special price of $170.00 is offered per bracelet for this order? Should the special order be accepted at this price? Yes