Incremental analysis-produces several models of flag poles

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Reference no: EM13786696

Timex Inc. produces several models of flag poles. An outside supplier has offered to produce the flag poles for Timex for $270 each. Timex needs 1,500 flag poles annually. Timex provided the following unit costs for its flag poles:

Direct materials $100

Direct labor 110

Variable overhead 30

Fixed overhead (70% avoidable) 150

Instructions: Prepare an incremental analysis which shows the effect of the make-or-buy decision.

Reference no: EM13786696

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