Question: Quick Company has been purchasing a component, Part Q, for $20 a unit. Quick is currently operating at 70% of capacity and no significant increase

 Quick Company has been purchasing a component, Part Q, for $20

Quick Company has been purchasing a component, Part Q, for $20 a unit. Quick is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing method, is estimated as follows: $12.50 5.00 Direct materials Direct labor Variable factory overhead Fixed factory overhead Total 13.15 VARY $21.90 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part

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