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BE 172 Hernandez, Inc. manufactures three models of picture frames for a total of 8,000...

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Accounting

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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 produce a metal frame follows: Direct materials Direct labor $6 8 2 5 $21 Variable overhead Fixed overhead (70% unavoidable) Total A local company has offered to supply Hernandez the 8,000 metal frames it needs for $17 each. Instructions Create an incremental analysis for the make-or-buy decision

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