Temple inc produces several models of clocks an outside

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Reference no: EM13599833

Temple, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Temple for $420 each. Temple needs 1,200 clocks annually. Temple has provided the following unit costs for its commercial clocks:

Direct materials $100
Direct labor 120
Variable Overhead 80
Fixed Overhead (40% avoidable) 150

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

Reference no: EM13599833

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