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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
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
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