Prepare an incremental analysis schedule to demonstrate

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Reference no: EM131213016

RSW Company manufactures 11,500 units of widgets for use in its annual production. Costs are: Direct materials $21,600 Direct labot $55,250 Variable overhead $41,800 Fixed overhead $72,100 Alternatively, Rayco Company has offered to sell Flop 10,000 units of widgets for: $17.80 per unit, If RSW accepts the offer, some of the facilities presently used to manufacture widgets could be rented to a third party at an annual rental of: $17,000 Additionally, $4.60 per unit of the fixed overhead applied to widgets would be totally eliminated.

Requirements: Prepare an incremental analysis schedule to demonstrate if RSW should accept Rayco's offer. (Must show all calculations)

Reference no: EM131213016

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