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Current Attempt in Progress Ivanhoe Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,800 of these toy pets is
Current Attempt in Progress Ivanhoe Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,800 of these toy pets is as follows: Ivanhoe Pets is approached by Kingbird Inc., which offers to make the toy pets for $81 per unit. Using incremental analysis, determine whether Ivanhoe Pets should accept this offer under each of the following independent assumptions: (a) Prepare an incremental analysis. Assume that $151,800 of the fixed overhead cost (in making 13,800 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 Prepare an incremental analysis. Assume that $151,800 of the fixed overhead cost (in making 13,800 of the toy pets) is avoidabl (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.) Should Ivanhoe Pets continue to make the pets or buy the pets
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