B19 fx A B C D E F G H J K L 500 units of a component part that is used in its product. The following information is available: 6 2 Marik Company manufactured 3 23456 Sales $33,750 Direct materials 14,000 Direct labor 5,500 Variable manufacturing overhead 3,000 7 Fixed manufacturing overhead 5,600 8 Total costs 28,100 Net Income 5,650 10 Another company has offered to sell the same component part to the company for $53 per unit. 11 The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of 14 $5,000 15 Instructions 16 1.Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision. 17 2. What is an opportunity cost and why should the managers consider it when making insourcing-outsourcing decisions? 18 19 a) 20 21 22 23 24 25 26 27 28 1. Your name and ID Question 1 Question 2 Question 3 Ready Learning Line management Management accounting Marketing Planning 31 33 23 25 30 Pearson Copyright 2018, 2016, 2015 Pearson Education, Ltd. All Rights Reserved. Slide 39 of 41 English (United States) + It will be very helpful to you, as you study, to check if you ca