EXERCISE 9-6 (a) (1) Decision Net Income Make Buy Increase (Decrease) Direct materials $800,000 $0 $800,000 Direct labor $600,000 $0 $600,000 Variable overhead $120,000 $0 $120,000 Fixed overhead $200,000 $0 $200,000 Purchase price $1,800,000 ($1,800,000) Total annual cost $1,720,000 $1,800,000 ($80,000) Accept Offer ?? Yes or No No…
Words 967 - Pages 4