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Grades Course Contents LON-CAPA PROBLEMS [MODULE PROBLEM #4 [ MAKE OR BUY DECISION ... Timer Evaluate Feedback Print Info Elena Martinez is a managerial accountant at Paibec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Paibec should continue to manufacture part MT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 36,000 MT-RF units that Palbec needs for 2022 at a price of $15.00 each. From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Paibec's costs to manufacture 30,000 units of MT-RF in 2021: Liu also told her that: Direct materials Direct labor Plant space rental [fixed] Equipment lease [fixed] Other overhead Variable Fixed Total $198,000 132,000 83,000 32,000 86,400 129,600 $661,000 if MT-RF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 8% and 4%, respectively, if MT-RF was purchased from Marley, $20,000 of the fixed overhead costs could be saved. if MT-RF was purchased from Marley, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $9,000 and $4,500, respectively, to terminate the two contracts. Martinez estimated that 36,000 units of MT-RF would be needed in 2022. REQUIRED [ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.] If MT-RF was purchased from Marley in 2022, what would be the effect on Paibec's profits? [Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number.] 164736 :Tries 2/5 *** **Other Views... My general preferences on what is marked as NEW

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