Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler...

50.1K

Verified Solution

Question

Accounting

image
Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows: Direct materials $ 3 Direct labor Variable overhead Fixed overhead 7 Total $ 21 Gallup Company has contacted Parks with an offer to sell it 3,000 staplers for $18 each. $5 of the fixed overhead per unit is unavoidable, Prepare an incremental analysis for the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number 23.-45 or parentheses e.g. (45).) Incremental cost to make 54000 Incremental savings on direct materials 9000 Incremental savings on direct labor 21000 Incremental net cost to buy 12000 incremental savings on variable manufacturing overhead v 6000 incremental net cost to make 600 Attempts. 1 of 2 used Submit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students