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3 The cost to Swank Company of manufacturing 1 5 , 0 0 0 units of a particular part is $ 1 3 5 ,
The cost to Swank Company of manufacturing units of a particular part is $ of which $ is fixed and $ is variable. The company can buy the part from an outside supplier for $ per unit. Fixed costs will remain the same regardless of Swank's decision.
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a Prepare a comparative schedule showing the total costs of this make or buy decision.
b Assuming no alternative use for the plant facilities, should the company buy the part or continue to manufacture it
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Prepare a comparitive schedule showing the total costs of this make or buy decision.
tableMake the Part,Buy tho Part,tableIncrementalAnalysisManufacturing costs:,,,Purchase price of the part,,,Totals
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