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Homework answers / question archive / Kando Company incurs a $11
Kando Company incurs a $11.00 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 it for $7.00 per unit and sell it for $11.90 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $11.00 per unit costs assigned to Product A would be eliminated.
Prepare an incremental analysis. Should the company continue to manufacture Product A or
purchase it for resale? (Round your answers to 2 decimal places.)
