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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
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 it for $7.00 per unit and sell it for $11.00 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $10.00 per unit costs assigned to Product A would be eliminated. 1. Prepare an Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Manufacture Product A Purchase Product A Sales 13.50 Costs: Avoidable costs Unavoidable costs Cost to purchase Total costs Continue to manufacture Purchase from outside Show All Items The company should
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