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photo one and two are the same question. it is just splitted into two photos for best understanding. Cullumber Company manufactured 7,680 units of a
photo one and two are the same question. it is just splitted into two photos for best understanding.
Cullumber Company manufactured 7,680 units of a component part that is used in its product and incurred the following costs: Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Cullumber Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $28,160. Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) Prepare an incremental analysis report for Cullumber Company which can serve as informational input into this make or buy decision. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg. (45). Do not leave any field blank. Enter 0 for the amounts.)Step by Step Solution
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