Incremental Analysis | |||
Make | Buy | Net Income Increase | |
Direct Material | 101,920 | 101,920 | |
Direct Labor | 120,640 | 120,640 | |
Variable overhead costs | 65,146 | 65,146 | |
Fixed manufacturing costs | 46,700 | 46,700 | - |
Purchase price | 345,800 | (345,800) | |
Total annual cost | 334,406 | 392,500 | (58,094) |
No, should not buy finials | |||
Yes, income would increase by 66,194-58,094 = $8,100 |
I NTER Awr ffers to make of in have to be bored by other products 13.30 Pottery Ranch the w e ll a...