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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
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 13,500 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).)
buy or make ?
Manson Industrias incurs unit osts of $6 ($4 variable d $2 fixed) in king an bly p for its fi hed product, A su pplier offer rs to make 13,500 of the assembly part at the offer accepted, Manson wi 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 eeg, -45 or parentheses e,g, (45) Net Income Make Buy ncrease (Decrease Variable manufacturing costs Fixed manufacturing cost purchase price Total annual cost the part The deci d be to ble osts but no fixed costs. PraparaStep by Step Solution
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