Homework SoursePurchase price Pina should SolutionPrepare a per unit differ
Purchase price Pina should
Solution
Prepare a per unit differential analysis :
Pina should make the sails
| Make sails | Buy Sails | Net income increase (decrease) | |
| Direct material | 94.05 | 94.05 | |
| Direct labour | 86.30 | 86.30 | |
| Variable overhead | 25 | 25 | |
| Purchase cost | 257 | -257 | |
| Total unit cost | 205.35 | 257 | -51.65 |
