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Question 2 Ruelman Corporation currently manufactures 3,000 units of component XYZ annually for its main product. The costs per stapler are as follows: Direct materials

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Question 2 Ruelman Corporation currently manufactures 3,000 units of component XYZ annually for its main product. The costs per stapler are as follows: Direct materials $ 4.00 Direct labor 6.00 Variable overhead 3.20 Fixed overhead 7.00 Total $22.00 Dorie Company has contacted Ruelman with an offer to sell it 3,000 components of XYZ for $17.40 each. Sixty percent of the fixed overhead per unit is unavoidable. Instructions Prepare an incremental analysis for the make-or- buy decision

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