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  3. \(\$ 12.25\) per unit of the component, based on t

\(\$ 12.25\) per unit of the component, based on the 110,000 components that Davey Enterprises...

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Accounting

\(\$ 12.25\) per unit of the component, based on the 110,000 components that Davey Enterprises currently produces. This current cost per unit is based on the following calculations:
View the information. margin per year.
Read the requirements. Difference column when the cost to make exceeds the cost to buy.)
Requirements
1. If Davey Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much?
2. What is the maximum price per unit Davey Enterprises would be willing to pay if it outsources the component?
Information
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