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Mo-Kan Company incurs a $6 per unit cost for Product A, which it currently manufactures and sells for S9 per unit. Insiead of maufacturing and
Mo-Kan Company incurs a $6 per unit cost for Product A, which it currently manufactures and sells for S9 per unit. Insiead of maufacturing and selling this product, the company can purchase Product B for S5 per urnit and sell it for S8 par unit. If it does so, unit sales would rerriain unchanged avd $5 of the $8 per unit costs assigned to Product A would be eliminated. 1. Prepare Incremental cost alsis. Input all amounts as positive values. Round your answers to 2 decimal places. Omit the "$" sign in your response.) Incremental cost analysis Costs of purchasing: Cost to purchase Product B Revenue loss from reduced price Total oost of purchasing Product B Costs eliminated if Product B purchased Net incremental cost of purchasing ProductB 2. Should the company continue to manufacture Product A or purchase Product B for resale? Manufacture Praduct A O Purchase Praduct B
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