Question: Snipe Company has been purchasing a component, Part Q for $19.20 per unit. Snipe is currently operating at 70% of capacity and no significant increase

 Snipe Company has been purchasing a component, Part Q for $19.20

Snipe Company has been purchasing a component, Part Q for $19.20 per unit. Snipe 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 is estimated as follows: $11.50 Direct materials Direct labor Variable factory overhead Fixed factory overhead 4.50 1.12 3.15 $20.27 Total Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank. Differential Analysis Proposal to Manufacture Part March 12 Make Buy Differential effect on Income Unit costs Differential cost to manufacture part Income

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