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Brief Exercise 20-04 Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A
Brief Exercise 20-04 Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 19,400 of the assembly part at $6. the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sigo preceding the number 45 or parentheses e. Net Income Increase (Decrease) Variable manufacturing costs Fored manufacturing costs Purchase price Total annual cost The decision should be to the part the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing -45 or parentheses e.g. (45).)
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