Question
Completion Status: QUESTION 20 Parks Corporation currently manufactures 2,500 staplers annually for its main product. The costs per stapler are as follows Direct materials Direct
Completion Status: QUESTION 20 Parks Corporation currently manufactures 2,500 staplers annually for its main product. The costs per stapler are as follows Direct materials Direct labor Variable overhead $2.00 $5.00 $3.00 $9.00 Fixed overhead Total $19.00 Gallup Company has contacted Parks with an offer to sell it 2,500 staplers for $15.00 each. $2 of the fixed overhead per unit is unavoidable. Instructions In the table below, prepare an incremental analysis for the make-or-buy decision TABLE: COST CALCULATIONS FOR 2.500 UNITS OF STAPLER Direct materials Direct Labor Variable overhead Fixed overhead Purchase cost MAKE BUY INCREMENTAL NET INCOME Total Cost Click Save and Submit to save and submit. Click Save All Annors to save all annes 4.5 points Save Save All Answers Save and Direct materials Direct Labor Variable overhead Fixed overhead Purchase cost INCUME Total Cost What should be the decision of the company's management? MAKE or BUY? IMPORTANT!! TYPE YOUR ANSWER TO THE NEAREST WHOLE NUMBER (WITHOUT DECIMAL POINTS AND WITHOUT S SIGN (CURRENCY SIGN) AS IT WILL NOT BE ACCEPTED BY THE SYSTEM) AND WHEN THERE IS A NEED FOR YOU TO PUT NEGATIVE SIGN IN THE ANSWER, PLEASE INCLUDE IT BY USING "OR" (NUMBERS)", BECAUSE IF THERE IS SUPPOSED TO BE A NEGATIVE, BUT YOU DID NOT PUT IT, MARKS WILL NOT BE GIVEN. QUESTION 21
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