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Juanita Company must decide whether to make or buy some of its components for the appliances it produces The costs of producing 166,000 electrical cords

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Juanita Company must decide whether to make or buy some of its components for the appliances it produces The costs of producing 166,000 electrical cords for its appliances are as follows Instead of making the electrical cords at an average cost per unit of exist1.00 (exist166,000 + 166,000), the company has an opportunity to buy the cords at exist0 90 per unit If the company purchases the cords, all variable costs and one-fourth of the fixed costs will be eliminated (a) Prepare an incremental analysis showing whether the company should make or buy the electrical cords (b) Will your answer be different if the released productive capacity will generate additional income of exist5,000

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