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Instant Enterprises manufactures one of the components used to assemble its main company product. Specialty Products, Inc., has offered to make the component at a cost of $12.20 per unit. Instant Enterprises' current cost is $17.75 per unit of the component, based on the 120,000 components that Instant Enterprises currently produces. Read the tequirements: This current cost per unit is based on the following calculations: (Click the icon to view the information.) None of Instant Enterprises' frxed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a now product. This new product would be expected to generate $34,000 of contribution margin per year. Requirement 1. If Instant Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a " 0 " for any zoro balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Requirements Data table 1. If Instant Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Instant Enterprises would be willing to pay if it outsources the component

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