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  3. genie inc. owns a machine that produces yoga block

Genie Inc. owns a machine that produces yoga blocks for the gift packages the company...

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Accounting

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Genie Inc. owns a machine that produces yoga blocks for the gift packages the company sells. The company uses 1,000 yoga blocks in production each month. The costs of making one yoga block is $7 for direct materials, $5 for variable manufacturing overhead, $4 for direct labour and $8 for fixed manufacturing overhead. The unit cost is based on the monthly production of 1,000 yoga blocks. The company determined that 25% of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Genie the yoga blocks for $15 each, and can supply all the units it needs. Prepare an incremental analysis to determine if Genie should buy the component from the supplier. What is the total unit price to make the product? $ 24 What is the total unit price to buy the product? $ 15 What is the incremental cost per unit to Genie if they buy 15,000 units from this outside supplier? $ Is this incremental cost a net increase or decrease in costs to the company? Should the company make or buy the yoga blocks? Please answer all parts of the

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