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Please answer the rest and explain the math behind it QS 23-7 Make or buy LO A1 Kando Company incurs a $12.00 per unit cost
Please answer the rest and explain the math behind it
QS 23-7 Make or buy LO A1 Kando Company incurs a $12.00 per unit cost for Product A, which it currently manufactures and sells for $29.00 per unit. Instead of manufacturing and selling this product, the company can purchase it for $6.00 per unit and sell it for $26.60 per unit. If it does so, unit sales would remain unchanged and $6.00 of the $12.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Make Buy $ 20to $ 26.60 12.00 Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit 6.00 Company shouldStep by Step Solution
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