BE 20-4

Kimmel, Accounting, 6e Help I S Brief Exercise 20-4 Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 18,800 of the assem at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson wil realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Variable manufacturing costs Purchase price Total annual cost The decision should be to the part. Open Show Work Click if you would like to Show Work for this question: 2