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Crane Company manufactured 6,240 units of a component part that is used in its product and incurred the following costs: Direct materials $36,400 Direct labor 15,600 Variable manufacturing overhead 10,400 Fixed manufacturing overhead 20,800 $83,200 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Crane Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $22,880. Prepare an incremental analysis report for Crane Company which can serve as informational input into this make or buy decision. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter o for the amounts.) Make Buy Increase (Decrease) - $ $ $ 4 Ivanhoe Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $60,600 $100,300 $189,200 Product 12 15,800 29,200 34.300 Product 14 54,400 150,300 214,100 (a) Determine total net income if all products are sold at the split-off point. Net income $

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