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Ivanhoe Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,200 of these toy pets is as follows: Direct materials
Ivanhoe Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,200 of these toy pets is as follows: Direct materials ($35 per pet) $462,000 Direct labour ($29 per pet) 382.800 Variable overhead ($9 per pet) 118,800 Allocated fixed overhead ($23 per pet) 303,600 Total $1,267,200 ws Ivanhoe Pets is approached by Metlock Inc., which offers to make the toy pets for $84 per unit. Using incremental analysis, determine whether Ivanhoe Pets should accept this offer under each of the following independent assumptions: Activate
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