eroblem 3-20 points cale, Inc. owns a machine that produces baskets for the packages the company sets. The con 900 baskets in production each month. The costs of m ica en 14 for dred materials, variable manufacturing ovemead, 52 for direct labor and $5 for food manufacturing overhead. The un is based on the monthly production of 900 baskets The con determined that 30% of the fored manufacturing overhead is avoidable. An outside supplier has offered to sell Cale the baskets for $13 each, and can supply all the units it needs Instructions Prepare an incremental analysis to determine if Caic should buy the baskets from the supplier. Problem 4 - 10 points Talia Corp. produces digital cameras. For each camera produced, direct materials are $20, direct laboris $16, variable manufacturing overhead is $12, fixed manufacturing overhead is $28, variable selling and administrative expenses are $10, and fixed selling and administrative expenses are $24. Instructions Compute the target selling price assuming a 40% markup on total per unit cost