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Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,800 of these toy pets is as follows: Direct materials

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Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,800 of these toy pets is as follows: Direct materials ($30 per pet} $354,000 Direct labour ($30 per pet) 354,000 Variable overhead ($10 per pet) 118,000 Allocated xed overhead ($25 per pet) 295,000 Total $1,121,000 Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $81 per unit. Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions

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