Kando Company incurs a $11.00 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 $11.30 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $11.00 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 the answers to 2 decimal places.)

Make Buy Selling price per unit 13.50 Cost per unit to make 0.00 Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should: MakeOutside Costs to Make|Costs to Buy Supplier Calculate the total incremental cost of making 54,000 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Relevant Amount per Relevant Fixed Total Relevant Costs Costs Unit Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ 0Incremental Costs to Buy Relevant Relevant Fixed Total Relevant Amount per Costs Costs Unit Purchase price per unit Total incremental cost to buy