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Pharoah, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 1 , 0 4 0 baskets in

Pharoah, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 1,040 baskets in production each month. The costs of making one basket are $4 for direct materials, $3 for variable manufacturing overhead, $2 for direct labor, and $5 for fixed manufacturing overhead. The unit cost is based on the monthly production of 1,040 baskets. The company determined that 30% of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Pharoah the baskets for $13 each, and can supply all the units it needs.
Prepare an incremental analysis to determine if Pharoah should buy the baskets from the supplier. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).)
$
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