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Kando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for $22.50 per unit. Instead of manufacturing and

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Kando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for $22.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $19.50 per unit. If it does s0, unit sales would remain unchanged and $5.00 of the $10.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $6.10 per unit to manufacture. The units can be sold as is for $2.60 each, or they can be reworked for $4.70 each and then sold for the full price of $8.70 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $6.10 each, and sell them at the full price of $8.70 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.)

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