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Garcia Company has 10,400 units of its product that were produced last year at a total cost of $156,000. The units were damaged in a

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Garcia Company has 10,400 units of its product that were produced last year at a total cost of $156,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $3 each or it can repair the units at a total cost of $18,400 and then sell them for $7 each. Calculate the incremental net income of the units are repaired Sell as is Press further Incremental Net Income Sales Additional processing costs Total $ 0 $ 0 5 Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $6.00 per unit and sell it for $10.60 per unit. If it does so, unit sales would remain unchanged and $6.00 of the $9.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Manufacture Product A Purchase Sales Costs: Avoidable costs Unavoidable costs Cost to purchase Total costs The company should: es

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