Please don't give image format Splish Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, andvariable manufacturing overhead is charged to production at the rate of 50% of direct labour costs. The direct materials and directlabour costs per unit to make the lampshades are $4.50 and $5.80, respectively. Normal production is 48,200 table lamps per year.A supplier offers to make the lampshades at a price of $13.50 per unit. If Splish Inc. accepts the supplier's offer, all variablemanufacturing costs will be eliminated, but the $42,800 of fixed manufacturing overhead currently being charged to the lampshadeswill have to be absorbed by other products. Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal places, e.g. 5,275. Ifan amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Whilealternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)Number of units: 48,200$$Make$$Buy$$Net IncomeIncrease (Decreas

The process of deciding whether to produce a product or service in-house or to acquire it from an…

Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal places, e.g. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Number of units: 48,200 Make $ Buy Net Income Increase (Decreas

Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal places, e.g. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Number of units: 48,200 Make $ Buy Net Income Increase (Decreas

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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