Question: Deka Corporation currently manufactures 3,000 subassemblies annually for its main product. The costs per unit are as follows: Direct materials 30.00 Direct labor 80.00 Variable

  1. Deka Corporation currently manufactures 3,000 subassemblies annually for its main product. The costs per unit are as follows:

Direct materials

30.00

Direct labor

80.00

Variable overhead

40.00

Fixed overhead

70.00

Total

220.00

Howard Company has contacted Deka with an offer to sell it 3,000 subassemblies for P180.00 each. P50 of the fixed overhead per unit is unavoidable. Create an incremental analysis for the make or buy decision.

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