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Parks Corporation currently manufactures 2,500 staplers annually for its main product. The costs per stapler are as follows $2.00 Direct materials $5.00 Direct labor $3.00

Parks Corporation currently manufactures 2,500 staplers annually for its main product. The costs per stapler are as follows $2.00 Direct materials $5.00 Direct labor $3.00 Variable overhead $9.00 Fixed overhead $19.00 Total Gallup Company has contacted Parks with an offer to sell it 2,500 staplers for $15.00 each. $2 of the fixed overhead. per unit is unavoidable Instructions In the table below, prepare an incremental analysis for the make-or-buy decision TABLE: COST CALCULATIONS FOR 2,500 UNITS OF STAPLER INCREMENTAL NET INCOME BUY MAKE Direct materials Direct Labor Variable overhead Fixed overhead Purchase cost Total Cost ?What should be the decision of the company's management? MAKE or BUYimage text in transcribedimage text in transcribed

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