b
Should Pharoah Ranch buy the finials?
Pharoah Ranch should the finials.
c
Would your answer be different in b if the productive capacity released by not making the finials could be used to produce income of $ Prepare the incremental analysis to show the result.
tableMake,Buy,tableNet IncomeIncreaseDecreaseTotal annual cost,$$$
Make
Buy
Increase Decrease
Direct materials
$
s
$
Direct labor
Variable overhead costs
Fixed manufacturing costs
Purchase price
Total annual cost
table
table
s
b
Should Pharoah Ranch buy the finials?
Pharoah Ranch should the finials.
c
Would your answer be different in b if the productive capacity released by not making the finials could be used to produce income of $ Prepare the incremental analysis to show the result.
