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xYZCO, moduces aif the parts it uses to manufacture its products. The following costs per unit were incurred in manufocturing 75,000 units of Part ing
xYZCO, moduces aif the parts it uses to manufacture its products. The following costs per unit were incurred in manufocturing 75,000 units of Part ing A supplier has offered to sell 75,000 units of part 899 to XYZCo. for $12 per unit. If XYZCO, accepts the offer, fixed overthead could be reduced by 50% per unit. In addition, the facilities used to produce 899 could be used to manufacture part C182 for which 7z Co. has been unable to meet current demand, 5 ales of C182 should increase by 30%. The moit recent income statement for part C182 is as follows: Required: a. Calculate the change in XYZ Co.'s incremental income if the supplier's olfer is accepted. b. Should the supplier's offer be accepted? c. What qualitative factors should be considered
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