Exercise 20-8 Your answer is partially correct. Try again. Innova uses 1,030 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct mial $58.02 Direct labor Overhead Total 35.82 126.50 $220.34 overhead costs indude variable material handling costs o S6.66, which are applied to products on the basis of direct mate al costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% vanable costs and 40% fixed costs. A vendor has offered to supply the IMC2 component at a price of 300 per unit. Prepare the incremental analysis for the decision to make or buy IMC2 Net Income Make IMC2 (per unit) Buy IMC2 (per unit) (Decrease) Direct material Direct labor Material handling Variable overhead Purchasc pricc 5.02 Total unit cost 174.5 292 127.6 27,01 Should Innova purchase the component from the outside vendor if Innova's capacity remeins idle