Tapeo Company has always made the electronic components that go into its GPS systems in-house....
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Tapeo Company has always made the electronic components that go into its GPS systems in-house. Streeter Company has offered to supply these electronic components at a price of $38 each. Tapeo uses 18,000 units of these components each year. The cost per unit of this component is as follows: Assume that 45% of Tapeo Company's fixed overhead would be eliminated if the electronic component was no longer produced in-house. Required: A. If Tapeo decided to purchase the electronic component from Streeter Company, by how much would its operating income increase or decrease? Round per unit costs to 2 decimal places. $ B. Should Tapeo continue to make the electronic component or buy it from Streeter Company
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