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Question 14 of 14 > -/5 III View Policies Current Attempt in Progress Buddy Pets has recently started to manufacture talking toy pets. The cost

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Question 14 of 14 > -/5 III View Policies Current Attempt in Progress Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11.600 of these toy pets is as follows: Direct materials ($31 per pet) $359600 Direct labour (528 per pet) 324,800 Variable overhead (59 per pet) 104.400 Allocated fixed overhead ($23 per pet) 266.800 Total $1055,600 Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $81 per unit Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions: Precare an incremental analysis. Assume that $169,200 of the fixed overhead cost in making 11.600 of the toy Dets) is avoidable. (Enter savings with a negative sign preceding the number eg.-15.000 or parenthesis ex (15,0001) Cost Make Buy Cost (Saving Prepare an incremental analysis. Assume that $139,200 of the fixed overhead cost in making 11,600 of the toy pets) is avoidable. (Enter savings with a negative sign preceding the number eg. -15,000 or parenthesis, eg. (15,000)) Cost Make Buy Cost (Saving) $ $ V Total annual cost Should Buddy Pets continue to make the pets or buy the pets? Buddy Pets should the pets Prepare an incremental analysis. Assume that none of the fixed overhead is avoidable. However, if the pets are purchased from Maxum, Buddy Pets can use the released productive resources to generate additional income of $205,100. (Enter savings with a negative sign preceding the number es. -15,000 or parenthesis, es (15,000).J Cost Make Buy Cost (Saving) $

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