Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,700 of these toy pets is as follows: Direct materials ($32 per pet) $438,400 Direct labour ($26 per pet) 356,200 Variable overhead ($13 per pet) 178,100 Allocated fixed overhead ($24 per pet) 328,800 Total $1,301,500 Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $84 per unit. Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions: Please dont provide solutions image based thanx

Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,700 of these toy pets is as follows: Direct materials ($32 per pet) $438,400 Direct labour ($26 per pet) 356,200 Variable overhead ($13 per pet) 178,100 Allocated fixed overhead ($24 per pet) 328,800 Total $1,301,500 Buddy Pets is approached by Maxum Inc., which offers to make the toy pets for $84 per unit. Using incremental analysis, determine whether Buddy Pets should accept this offer under each of the following independent assumptions: Please dont provide solutions image based thanx

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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bartleby, a Learneo, Inc. business

Direct materials ($32 per pet)		$438,400
Direct labour ($26 per pet)		356,200
Variable overhead ($13 per pet)		178,100
Allocated fixed overhead ($24 per pet)		328,800
Total		$1,301,500