Ex. 21.6

The cost to Swank Company of manufacturing 15,000 units of a particular part is $135,000, of

which $60,000 is fixed and $75,000 is variable. The company can buy the part from an outside

supplier for $6 per unit. Fixed costs will remain the same regardless of Swanks decision. Should

the company buy the part or continue to manufacture it? Prepare a comparative schedule in the

format illustrated in Exhibit 216 .