Prepare incremental cost analysis

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Reference no: EM131965418

Kando Company incurs a $12.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit.

Instead of manufacturing and selling this product, the company can purchase Product B for $5.00 per unit and sell it for $12.00 per unit.

If it does so, unit sales would remain unchanged and $5.00 of the $12.00 per unit costs assigned to Product A would be eliminated.

Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase Product B for resale?

(Round your answers to 2 decimal places.)

Reference no: EM131965418

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