Kando Company incurs a $10.00 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 Product B for $5.00 per unit and sell it for $11.50 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $10.00 per unit costs assigned to Product A would be eliminated.

1.	Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase Product B for resale? (Round your answers to 2 decimal places.)

Manufacture Product A Purchase Product B 13.50 Costs Avoidable costs Unavoidable costs Cost to purchase Total costs The company should