Question: *NEED URGENT HELP UPVOTE GUARANTEED* Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 10,500 of these toy pets
*NEED URGENT HELP UPVOTE GUARANTEED*
Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 10,500 of these toy pets is as follows:
| Direct materials ($35 per pet) | $367,500 | ||
| Direct labour ($26 per pet) | 273,000 | ||
| Variable overhead ($8 per pet) | 84,000 | ||
| Allocated fixed overhead ($21 per pet) | 220,500 | ||
| Total | $945,000 |
Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $80 per unit. Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions:
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