Allocated costs will not be eliminated if Widget is purchased. So if Widget is purchased, the fixed

manufacturing costs allocated to Widget will have to be absorbed by other production departments.

The quotation for $5,000$ Widget units from a supplier is $$\frac{3\mathrm{.}2}{?}$ unit

Instructions:

a$.$ Prepare the incremental analysis for the decision to make or buy the Widget.

b$.$ Based on your analysis, what decision should management make?

c$.$ Will your answer be different if the released productive capacity will generate additional

income of $$1,000?$