Question: Can u provide me with right answer. To know my mistakes John Deere produces engine valves at its metal foundry in Bedford, Indiana. These valves

 Can u provide me with right answer. To know my mistakes Can u provide me with right answer. To know my mistakes

John Deere produces engine valves at its metal foundry in Bedford, Indiana. These valves are used in the production of specialty engines. The company's Accounting Department reports the following costs of producing the 7, 000 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $28.30 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $9, 000 of these allocated general overhead costs would be avoided. Prepare a report that shows the effect on the company's total net operating income of buying part F77 from the supplier rather that continuing to make it inside the company

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