Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Current Attempt in Progress Crane Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product.
Current Attempt in Progress 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 13,500 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 negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Net Income Increase (Decrease) Make Buy $ Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total annual cost $ The decision should be to the part Question 4 of 14 - / 1 Crane Street inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fred. Because it has unused capacity, Crane Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Crane Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number 08-45 or parentheses og (45) Process Further Net Income Increase (Decrease) Sell $ Sales price per unit Cost per unit Variable Fixed Total Net income per unit The bookcases
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started