QS 23-6 make or buy LO P1

QS 23-6 Make or buy LO P1 Kando Company Incurs a $10.00 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 $10.00 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.) Manufacture Product A Purchase Sales Costs: Avoidable costs Unavoidable costs Cost to purchase Total costs The company should