Question: 2. ABC Inc. is currently manufacturing a component unit. They are considering outsourcing the part to a supplier for $13 per unit. If the component

2. ABC Inc. is currently manufacturing a component unit. They are

2. ABC Inc. is currently manufacturing a component unit. They are considering outsourcing the part to a supplier for $13 per unit. If the component units are purchased, the company has determined that 50% of the fixed manufacturing overhead is avoidable. The cost per unit of manufacturing the part internally is as follows: Direct Materials Direct Labor Variable Manufacturing OH Fixed Manufacturing OH $5 $3 $3 $6 Assuming the company has excess capacity, what is the incremental net income or net loss from manufacturing (making) 500 units

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