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Taylor Swift Inc. produces several models of travel bags. An outside supplier has offered to produce the laptop bags for TSI for $ 4 5

Taylor Swift Inc. produces several models of travel bags. An outside supplier has offered to produce the laptop bags for TSI for $450 each. TSI needs 600 bags annually. TSI has provided the following unit costs for its travel bags:
Direct materials $ 80
Direct labour 90
Variable overhead 85
Fixed overhead (30% avoidable)120
Prepare an incremental analysis which shows the effect of the make-or-buy decision.

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