Parks Corporation currentiy manufactures 3,000 stapiers annually for its main product. The costs per stapler are...

  

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Parks Corporation currentiy manufactures 3,000 stapiers annually for its main product. The costs per stapler are as follows: Direct materials $ 3.00 7.00 Direct labor Variable overhead 4.00 Fixed overhead Total 7.00 $21.00 Gallup Company has contacted Parks with an offer to sell i: 3,000 staplers for $18.00 each. $5 of the fixed overhead per unit is unavoidable. Prepare an incremental analysis for the make-or-buy decision, (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Parks Corporation currentiy manufactures 3,000 stapiers annually for its main product. The costs per stapler are as follows: Direct materials $ 3.00 7.00 Direct labor Variable overhead 4.00 Fixed overhead Total 7.00 $21.00 Gallup Company has contacted Parks with an offer to sell i: 3,000 staplers for $18.00 each. $5 of the fixed overhead per unit is unavoidable. Prepare an incremental analysis for the make-or-buy decision, (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer rating: 100% (QA)

Solution Particulars Make Buy Incremental increase decrease Purchase300018 54000 540... View the full answer