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Calc, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 900 baskets in production each month. The

Calc, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 900 baskets in production each month. The costs of making one basket is $4 for direct materials, $3 for variable manufacturing overhead, $2 for direct labor, and $5 for fixed manufacturing overhead. The unit cost is based on the monthly production of 900 baskets. The company determined that 30% of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Calc the baskets for $13 each, and can supply all the units it needs. Prepare an incremental analysis to determine if Calc should buy the baskets from the supplier. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) > A Incremental savings on direct labor Incremental cost to buy Additional cost to buy Incremental savings on fixed overhead Incremental savings on direct materials Incremental savings on variable overhead

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