Prepare incremental analysis for subcomponent JXY.(If an amount reduces the incremental costs then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).)

Question 34 Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,200 units of subcomponent JXY per month. Direct materials costs $41,500 Direct labour costs 31,000 Variable overhead 16,000 Fixed overhead* 13,900 *Fixed overhead includes $4,800 supervisor's salary. International Firm agrees to supply Montel with 11,200 units per month for a total cost of $137,000. If subcomponent JXY is outsourced, Montel will be able to increase the production and sales of its nal product by 1,080 units per month; the product is sold for $110 per unit and its average variable costs per unit are $75. The supervisor's salary will be eliminated if subcomponent JXY is outsourced