Hernandez, Inc. manufactures three models of picture frames for a total of 8,000 frames per year. The unit cost to produce a metal frame follows:

Direct materials			$	6
Direct labor				8
Variable overhead				2
Fixed overhead (70% unavoidable)				5
	Total		$	21

A local company has offered to supply Hernandez the 8,000 metal frames it needs for $17 each. Create an incremental analysis for the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

select an item Incremental savings if make decision is madeIncremental savings on variable overheadIncremental savings on fixed overheadunavoidable portionIncremental savings if buy decision is madeIncremental savings on direct materialsIncremental net cost to makeIncremental savings on direct laborIncremental savings on fixed overheadavoidable portionIncremental cost to makeIncremental cost to buy		$enter a dollar amount
select an item Incremental savings on direct materialsIncremental savings if make decision is madeIncremental savings on direct laborIncremental savings on fixed overheadunavoidable portionIncremental cost to buyIncremental cost to makeIncremental savings if buy decision is madeIncremental net cost to makeIncremental savings on fixed overheadavoidable portionIncremental savings on variable overhead		enter a dollar amount
select an item Incremental savings on direct laborIncremental cost to makeIncremental savings if buy decision is madeIncremental savings on fixed overheadunavoidable portionIncremental savings if make decision is madeIncremental net cost to makeIncremental savings on direct materialsIncremental savings on fixed overheadavoidable portionIncremental savings on variable overheadIncremental cost to buy		enter a dollar amount
select an item Incremental cost to makeIncremental savings on direct materialsIncremental net cost to makeIncremental savings on variable overheadIncremental savings on fixed overheadunavoidable portionIncremental savings if make decision is madeIncremental savings on fixed overheadavoidable portionIncremental savings on direct laborIncremental cost to buyIncremental savings if buy decision is made		enter a dollar amount
select an item Incremental net cost to makeIncremental cost to buyIncremental savings if make decision is madeIncremental savings if buy decision is madeIncremental cost to makeIncremental savings on variable overheadIncremental savings on fixed overheadavoidable portionIncremental savings on fixed overheadunavoidable portionIncremental savings on direct laborIncremental savings on direct materials		enter a dollar amount
select an item Incremental net cost to makeIncremental savings on fixed overheadavoidable portionIncremental savings if buy decision is madeIncremental savings on direct materialsIncremental savings on direct laborIncremental cost to buyIncremental savings on variable overheadIncremental savings if make decision is madeIncremental cost to makeIncremental savings on fixed overheadunavoidable portion		$enter a total amount