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question 7 ot yet iswered anied out of 00 Flag Temple, Inc. produces several models of clocks. An outside supplier has offered to produce
question 7 ot yet iswered anied out of 00 Flag Temple, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Temple for $350 each. Temple needs 500 clocks annually. Temple has provided the following unit costs for its commercial clocks Direct materials Direct labour Variable overhead Fixed overhead (30 % avoidable) $70 80 75 120 Gestion a) Prepare an incremental analysis which shows the effect of the make-or-buy decision. b) What are the other financial/non financial factors to consider before contracting with an outside supplier?
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