Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Manufacturing incurs unit costs of $7.10 ( $5.10 variable and $200 fixed) in making a sub-assembly part for its finished product A supplier offers

image text in transcribed

image text in transcribed

Blossom Manufacturing incurs unit costs of $7.10 ( $5.10 variable and $200 fixed) in making a sub-assembly part for its finished product A supplier offers to make 11,200 of the parts for $5.60 per unit If it accepts the offer, Blossom will save all variable costs and $100 of fixed costs Prepare an analysis showing the total cost savings, if any, that Blossom will realize by buying the part. (Round per unit answers to 2 decimal ploces, eg 1525. If an amoumt restuces the net income then enter with a negative sign precieding the number, 8g15,000 or parrentheris es (15,000)) Atternpts: 0 of 2 used Current Attempt in Progress Blossom Manufacturing incurs unit costs of $7.10 ( $5.10 variable and $2.00 fixed) in making a sub assembly part for its finished product A supplier offers to make 11,200 of the parts for $5,60 per unit. If it accepts the offer. Blossom will save all variable costs and $100 of fixed costs. Prepare an analysis showing the total cost savings, if any that Blossom will realize by buying the part. (Round per unit answers to 2 decimal places, eg 15,25 . If an amournt neducres the net income then enter wilb a reggotine sign preceding the number, eg 15,000 ar parmentheris, eg, (15,000)] The decision should be to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Finance Managers

Authors: Jai Kumar Batra

1st Edition

9352806964, 978-9352806966

More Books

Students also viewed these Accounting questions

Question

Are summer stipends available?

Answered: 1 week ago