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Data table Polo Enterprises manufactures one of the components This current cost per unit is based on the following used to assemble its main company product. Specialty calculations: Products, Inc., has offered to make the component at a cost of $12.40 per unit. Polo Enterprises' current cost is $14.50 per unit of the component, based on the 125,000 components that Polo Enterprises currently produces. (Click the icon to view the information.) Read the requirements. None of Polo Enterprises' fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $29,000 of contribution marqin per vear. 1. If Polo Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Polo Enterprises would be willing to pay if it outsources the component? Le: Ne Done Requirements Save 1. If Polo Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Polo Enterprises would be willing to pay if it outsources the component? following Produ cost o $14.5 compc (1.) Read Requirement 1. If Polo Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "0" for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.)

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