QS 23-6 Make or buy LO P1 Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $7.00 per unit and sell it for $11.50 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $9.00 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 Solling price per unit Cost por unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should QS 23-8 Sell or process further LO P2 Holmes Company produces a product that can be either sold as is or processed further Holmes has already spent $98,000 to produce 2,325 units that can be sold now for $71,500 to another manufacturer Alternatively, Holmes can process the units further at an incremental cost of $275 per unit. If Holmes processes further, the units can be sold for $455 each. Should Holmes sell the product now or process it further? Selle le Process Further Incremental Amount Sales Additional processing costs Income (loss) The company should QS 23-10 Scrap or rework LO P2 Signal mistakenly produced 1.500 defective cell phones. The phones cost $60 each to produce. A salvage company will buy the defective phones as they are for $35 each. It would cost Signal $88 per phone to rework the phones. If the phones are reworked, Signal could sell them for $132 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income