Edward currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $22. Edward currently produces 100,000 subcomponents at the following manufacturing costs: 
a. If Edward has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier?
b. If Edward has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier?
c. Now assume Edward would avoid $300,000 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier?
Definitions:
NPER Function
A financial function in spreadsheet software that calculates the number of periods for an investment based on constant, periodic payments and a constant interest rate.
Monthly Payment
A specified sum of money to be paid each month, often in the context of loans, subscriptions, or service contracts.
Car Loan
A type of financial loan that specifically funds the purchase of a vehicle, typically with interest over a set period.
Evaluate Formula Button
A tool in software applications, like spreadsheets, that allows users to verify the result of a formula within a cell.
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