Question: ABC Inc. is currently manufacturing a component unit. They are considering outsourcing the part to a supplier for $ 1 3 per unit. If the

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 costs are avoidable. The cost per unit of manufacturing the part internally is as follows:
Variable Costs
$11
Fixed Costs
$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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