Brief Exercise 7-4 Your answer is partially correct. Try again. 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 17,800 of the assembly part 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 will 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 Increase (Decrease) Make Buy Variable manufacturing costs Fixed manufacturing costs DOO indi X X Purchase price DI Total annual cost The decision should be to the part. Click if you would like to Show Work for this question: Open Show Work Exercise 7-6 al-a2 (Video) Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,000 Tri-Robos is as follows. Cost Direct materials ($48 per robot) Direct labor ($38 per robot) Variable overhead ($5 per robot) Allocated fixed overhead ($32 per robot) $912,000 722,000 95,000 608,000 $2,337,000 Total Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $111 per unit or $2,109,000. Following are independent assumptions. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials 1086800 1086800 Direct labor 877800 877800 x Variable overhead 146300 146300 Fixed overhead OTECCIO IGIONIO CONTI 606100 606100 Opportunity cost 375000 375000 Purchase price 2487100 2487100 X Totals 3092000 3093200 1200 Based on the above assumptions, indicate whether the offer should be accepted or rejected? should be accepted The offer