IDNLearn.com provides a collaborative environment for finding and sharing knowledge. Ask anything and receive immediate, well-informed answers from our dedicated community of experts.

kando company currently pays $7 per unit to buy a part for a product it manufactures. instead, kando could make the part for per unit costs of $3 for direct materials, $2 for direct labor, and $1 for incremental overhead. kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) prepare a make or buy analysis of costs for this part. (b) should kando make or buy the part?