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5.) A company has the following total costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed

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5.) A company has the following total costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell the company the subcomponent for $2.05 a unit. Prepare an incremental analysis to determine if the company should make or buy the subcomponent. 6.) A company produces 5,000 units of part. The following costs were incurred for that level of production: Direct materials $ 55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If the part purchased from an outside supplier, $40,000 of the fixed overhead is avoidable. An outside supplier offers to sell the part for a unit price of $68. Prepare an incremental analysis to determine if the company should you make or buy the product

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