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barge co produces several models of clocks an outside supplier has offered to produc 4137997

Barge Co. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Barge for $840 each. Barge needs 1,200 clocks annually. Barge has provided the following unit costs for its commercial clocks:

Direct materials ……………………………………… $200

Direct labor ……………………………………………. 240

Variable overhead …………………………………… 160

Fixed overhead (40% avoidable) …………………. 300

Instructions

Prepare an incremental analysis which shows the effect of the make-or-buy decision.

Barge Co produces several models of clocks An outside supplier

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