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Polo Entecprises 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. Polo Enterprises' current cost is $16.75 per unit of the component. based on the 85,000 components that Polo Enterprises currently produces. Read the requicements. This current cost per unit is based on the following calculations: (Click the icon to view the information.) None of Polo Enterprises' foxed costs will be eliminated if the component is oftsourced. However, the freed capacity could be used to buld a new product. This new product would be expected to generate $28,000 of contribution margin per year: Requirement 1. If Polo Enterpeises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Entor a " 0 " for any zoro balances, Use a minus sign of parentheses in the Difference column when the cost to make exceeds the cost to buy.) Data table Requirements 1. If Polo Enterpeises outsources the manulacturing of the component, will operating income increaso or decrease? By how much? 2. What is the maximum peice per unit Polo Enterprises would be wiling lo pay if it outsources the componint

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