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work: Chapter 8 Homework in list int Question 5, EB-29A (similar to) Marco Enterprises manufactures one of the components used to assemble its main

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work: Chapter 8 Homework in list int Question 5, EB-29A (similar to) Marco Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc, has offered to make the component at a cost of $12.40 per Marco Enterprises current cost is $14.25 per unit of the component, based on the 110,000 components that Marco Enterprises cuently produces Read the eurements HW Score: 0%, of 6 points of 1 O Point This current cost per unit is based on the tuwing c (Click the icon to view the information None of Marco Enterprises at costs will be mated the compon However, the freed capacity could be used to build a new product. Th would be expected to generale $29.000 of contribution margin per year m2 m3 Requirement 1. If Marco Enterpres outsources the manufacturing of the component, will operating income increase p sign or parentheses in the Difference column when the cost to make exceeds the Incremental Analysis Make Component by) Out Component Difference Data table 4 1.5 ma Outsourcing Decision Pls Faed costs Tal cost of 110,000 comp Lass Proft from another product Net cost Requirements 1. If Marco Enterprises outsources the manufacturing of the component, w operating income increase or decrease? By how much? 2. What is the maximum price per unit Marco Enterprises would be willing to pay if it outsources the component Print Done Direct material per unit Direct labor per un 50 Variatrie manufacturing evertat per unt 2.7 Feed manufacturing overhead per unit. 175 1425 Total manufacturing costs per un Print Done Save Clear all Check answer

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