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Sunland Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,800 of these toy pets is as follows: Direct
Sunland Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 11,800 of these toy pets is as follows: Direct materials ($33 per pet) $389,400 Direct labour ($27 per pet) Variable overhead ($12 per pet) 318,600 141,600 Allocated fixed overhead ($25 per pet) 295,000 Total $1,144,600 Sunland Pets is approached by Bramble Inc., which offers to make the toy pets for $83 per unit. Using incremental analysis, determine whether Sunland Pets should accept this offer under each of the following independent assumptions:
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