Question: Cans Inc is considering purchasing component YY instead if producing it inhouse Component YY can be purchased for 207 The following cost information pertains to

Cans Inc is considering purchasing component YY instead if producing it inhouse Component YY can be purchased for 207 The following cost information pertains to the production of component YY Cans Inc uses 75000 compenents per year Direct Materials 10080 Direct Labor 10 minutes per part 18 per hour 3 Variable OH 460 Fixed OH 234000 Depreciation 32420 Prepare an incremental analysis to determine if component YY should continue to be produced inhouse or purchased from an outside vendor Make Buy Difference Direct Materials 756000000 756000000 Direct Labor 22500000 22500000 VOH 34500000 34500000 Purchase Price 1552500000 1552500000 Total Cost 8130000 15525000 7395000 What are some qualitative considerations Cans Inc should make Cans Inc is considering purchasing component YY instead if producing it inhouse Component YY can be purchased for 207 The following cost information pertains to the production of component YY Cans Inc uses 75000 compenents per year Direct Materials 10080 Direct Labor 10 minutes per part 18 per hour 3 Variable OH 460 Fixed OH 234000 Depreciation 32420 Prepare an incremental analysis to determine if component YY should continue to be produced inhouse or purchased from an outside vendor Make Buy Difference Direct Materials 756000000 756000000 Direct Labor 22500000 22500000 VOH 34500000 34500000 Purchase Price 1552500000 1552500000 Total Cost 8130000 15525000 7395000 What are some qualitative considerations Cans Inc should make

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