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Rart III-Rosolve tho following incremental Analysin exeroise 30 points Bill Brady Company manufactured 6,000 units of a nowa nt part that is used in its
Rart III-Rosolve tho following incremental Analysin exeroise 30 points Bill Brady Company manufactured 6,000 units of a nowa nt part that is used in its product and incurred the following costs: Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would. not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Bill Brady Company has the opportunity to use the factory equipment to produce another product. Instructions a. Prepare an incremental analysis report for Bill Brady Company and determine if the product should be made or bought. (this question does not consider the opportunity cost yet). b. If the opportunity cost impact is considered, what would be the minimum amount of opportunity cost that would make the decision a "buy" one? (rounded to a dollar)
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