Crane Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 10,000 of the assembly part at $5 per unit. If the offer is accepted, Crane will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Crane will realize by buying the part. (Enter negaie amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. Net Income Increase (Decrease) Make Buy Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to the part. Lily Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Lily Street is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Lily Street should sel unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Process Net Income Increase (Decrease) Sell Further Sales price per unit Cost per unit s Variable Fixed Total Net income per unit The bookcases Lily, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $201,000, variable costs $176,000, and fixed costs $29,000. If the Big Bart line is eliminated, $20,100 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales Variable costs Contribution margin Fixed costs Net Income / (Loss) s The Big Bart product line should be