Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brief Exercise 12-4 Bramble Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A

image text in transcribed

Brief Exercise 12-4 Bramble Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Bramble will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Bramble will realize by buying the part. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g.-45 or parentheses ey. (45).) Make Buy Net Income Increase (Decrease) Variable manufacturing costs $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to the part

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_2

Step: 3

blur-text-image_3

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

Padhukas Students Handbook On Auditing And Assurance Including Multiple Choice Questions For CA Inter

Authors: CA G. Sekar, CA B Saravana Prasath

18th Edition

9390303087, 978-9390303083

More Books

Students also viewed these Accounting questions

Question

3. Contrast relational contexts in organizations

Answered: 1 week ago

Question

2. Describe ways in which organizational culture is communicated

Answered: 1 week ago

Question

1. Describe and compare approaches to managing an organization

Answered: 1 week ago