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BE 172 Hernandez, Inc. manufactures three models of picture frames for a total of 8,000 frames per year. The unit cost to pro
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Answer #1

Hernandez Inc. incremental analysis is shown below:

Incremental analysis Increase/Decrease in income Cost of making Cost of buying 8000*6-$48,000 8000 8-$64,000 8000*2=$16,000 |

As cost of buying is $4000 less than cost of making , thus it would be recommended that metal frames must be bought.

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