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Kando Company currently pays $ 1 3 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for
Kando Company currently pays $ per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $ for direct materials, $ for direct labor, and $ for incremental overhead. Kando normally applies overhead costs using a predetermined rate of of direct labor cost.
a Prepare a make or buy analysis of costs for this part.
b Should Kando make or buy the part?
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