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Crane Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,600 of these toy pets is as follows: Crane Pets
Crane Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,600 of these toy pets is as follows: Crane Pets is approached by Windsor Inc., Which offers to make the toy pets for $81 per unit. Using incremental analysis, determine whether Crane Pets should accept this offer under each of the following independent assumptions: Crane Pets is approached by Windsor Inc., which offers to make the toy pets for $81 per unit. Using incremental analysis, determine whether Crane Pets should accept this offer under each of the following independent assumptions: (a) Prepare an incremental analysis. Assume that $139,200 of the fixed overhead cost (in making 11,600 of the toy pets) is avoidable. (Enter savings with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Prepare an incremental analysis. Assume that $139,200 of the fixed overhead cost (in making 11,600 of the toy pets) is avoidable. (Enter savings with a negative sign preceding the number e.g. - 15,000 or parenthesis, eg. (15,000). While alternate approaches ore possible, irrelevant fixed costs should be included in both options when solving this problem.) Should Crane Pets continue to make the pets or buy the pets? Crane Pets should the pets. Save for Later Attempts: 0 of 1 used Should Crane Pets continue to make the pets or buy the pets? Crane Pets should the pets. Save for Later Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above
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