Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows:

Direct materials $3.00 Direct labor 7.00 Variable overhead 4.00 Fixed overhead 7.00 Total $21.00

Gallup Company has contacted Parks with an offer to sell it 3,000 staplers for $18.00 each. $5 of the fixed overhead per unit is unavoidable.

Prepare an incremental analysis for the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

1. ________________ $_________________

2._________________$_________________

3._________________$_________________

4._________________$_________________

5._________________$_________________

6_________________$_________________

Options for 1-6 blank number one is as follows:

"Incremental" Cost to Make

" " Net cost to buy

" " Savings on direct labor

" "Savings on fixed overhead

" "Savings on direct materials

" "on net cost to make

" "Savings on variable manufacturing overhead

" "Cost to by