Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows:
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.
Instructions
Prepare an incremental analysis for the make-or-buy decision.

Question

Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows:  
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.
Instructions
Prepare an incremental analysis for the make-or-buy decision.

Quizplus · Accepted Answer

The Answer of Parks Corporation currently manufactures 3,000 staplers annually for its main product. The costs per stapler are as follows:  
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.
Instructions
Prepare an incremental analysis for the make-or-buy decision.

Parks Corporation Currently Manufactures 3,000 Staplers Annually for Its Main