Clayton Inc estimates it will produce 1200 sanding machines during the next year with costs as follows Direct materials 245 per unit Direct labor 240 per unit Variable overhead 160 per unit Fixed overhead 40 avoidable 300 per unit An outside supplier has offered to produce the machines for Clayton for 750 a unit What is the incremental effect on profit for this make or buy decision Increase in profit of 18000 Decrease in profit of 18000 Increase in profit of 234000 Decrease in profit of 144000

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Increase in profit of 234000 Alternative 1 Make Tota... View the full answer