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Bo Pond5 cremental Anys 20 - 49 Ex. 186 Coyle Company manufactured 000 incurred the following con p h oto din product and 1 7,00

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Bo Pond5 cremental Anys 20 - 49 Ex. 186 Coyle Company manufactured 000 incurred the following con p h oto din product and 1 7,00 15.000 10.000 Direct materia 15.000 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 20.000 3801000 per unit Another company has offered to sell the same component part to the company for $11 The fixed manufacturing overhead consists mainly of depreciation on the equipo manufacture the part and would hobe reduced the component part was purchased outside firm. If the component part is purchased from the outside firm Cove Company has opportunity to use the factory equipment to produce another product which is estimated to have contribution margin of $22.000 Instructions Prepare an incremental analysis report for Coyle Company which can serve as informatid input into this make or buy decision Make NI Inere are or Decreare wenue table cost Buy 78,000 (4,000) (14,000) 787000 14,000) d cost Goog 6,000 22,000 Total cost ontribution margin y cost (16,000) the product. show not buy

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