Solution-Prepare an incremental analysis for the make or

Prepare an incremental analysis for the make or buy decision

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Reference no: EM133076934

Question - Tankers Corporation currently manufactures 17,000 staplers annually for its main product. The costs per stapler are as follows:

Direct materials $2.50

Direct labour 7.50

Variable overhead 3.00

Fixed overhead 8.00

Total $21.00

Morse Company has contacted Tankers with an offer to sell it 17,000 staplers for $19.00 each. $6 of the fixed overhead per unit is unavoidable. Prepare an incremental analysis for the make or buy decision.

Reference no: EM133076934

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Prepare an incremental analysis for the make or buy decision

Reference no: EM133076934

Reference no: EM133076934

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