Question: Please answer question b and c (using question a) Whispering Winds Firm is considering whether to outsource the manufacture of subcomponent XXY. The accounting department

Please answer question b and c (using question a)

Please answer question b and c (using question a) Whispering Winds Firm

Whispering Winds Firm is considering whether to outsource the manufacture of subcomponent XXY. The accounting department provides the folowing cost information for manufacturing 10,400 units of subcomponent JXY per month. "Fined overhead includes $4,400 supervisor's salary- Intemational Firm agrees to supply Whispering Winds with 10,400 units per month for a total cost af $131,850. If subcomponent JCY is autscurced, Whispering Winds will be able to increase the production and sales af its final product by 1,110 units per month; the product is sold for $120 per unit and its average variable casts per unit are $85. The supervisor's salary will be eliminated if subcomponent JXY is autsourced. (a) Your answer is correct. Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incrementel costs then enter with a negutive sign preceding the number eg. 15,000 or parenthesis, es (15,000). While alternate opproaches are possible, irreievant foved costs should be included in both options when soling this problem.) elextbook and Media Attempts: 2 of 2 used (b) Based on your analysis, what decision should management make? Management should decide to JXY as it would cost an additional $ if they were te

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