Killion Inc. incurs a $10.00 per unit cost for Product X, which it currently manufactures and...

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Killion Inc. incurs a $10.00 per unit cost for Product X, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $4.00 per unit and sell it for $11.20 per unit. If it does so, unit sales would remain unchanged and $4.00 of the $10.00 per unit costs of Product X would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product X or purchase it for resale? (Round your answers to 2 decimal places.) Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should: Make Buy Killion Inc. incurs a $10.00 per unit cost for Product X, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $4.00 per unit and sell it for $11.20 per unit. If it does so, unit sales would remain unchanged and $4.00 of the $10.00 per unit costs of Product X would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product X or purchase it for resale? (Round your answers to 2 decimal places.) Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should: Make Buy

Answer rating: 100% (QA)

Given Manufacturing Product A Selling price per unit 1350 Cost per uni... View the full answer