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Cullumber Company manufactured 6,360 units of a component part that is used in its product and incurred the following costs: $37,100 15.900 Direct materials Direct
Cullumber Company manufactured 6,360 units of a component part that is used in its product and incurred the following costs: $37,100 15.900 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 10.600 21,200 $84,800 Another company has offered to sell the same component phrt to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Cullumber Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $23,320. Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision, (Enter negative amounts using elther a negative sign preceding the number 03.-45 or parentheses es. (45). Do not leave any held blank. Entero for the amounts) Make Buy Increase (Decrease) s $ 37.100 Direct Materials 15.900 Direct Labor Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision (Enter negative amounts using either a negative sin preceding the number eg. -45 or parentheses e.g. (45). Do not leave any field blank Enter for the amounts) Make Buy Increase (Decrease) Direct Materials 37.100 $ Direct Labor 15.900 Variable Manufacturing Overhead 10.600 Fixed Manufacturing Overhead 21.200 Purchase Price > Total Annual Cost Opportunity Cost $ $ Total Cost
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