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Carla Vista, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 8 8 0 baskets in production
Carla Vista, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses baskets in production each month. The costs of making one basket are $ for direct materials, $ for variable manufacturing overhead, $ for direct labor, and $ for fixed manufacturing overhead. The unit cost is based on the monthly production of baskets. The company determined that of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Carla Vista the baskets for $ each, and can supply all the units it needs.
Prepare an incremental analysis to determine if Carla Vista should buy the baskets from the supplier. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
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