Manson 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 14,000 of 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 the total cost saving, if any, Manson will realize by buying the part.

	Make	Buy	Net Income Increase (Decrease)
Variable manufacturing costs	$	$	$
Fixed manufacturing costs
Purchase price
Total annual cost	$	$	$

Net Income Increase (Decrease) Make Buy Variable manufacturing costs Fixed manufacturing costs Purchase price 56000$ 56000 84000 (84000) Total annual cost 56000 84000 (28000) ake The decision should be to the