Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 17,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Create 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).)

MakeBuyNet Income

Increase (Decrease)Variable manufacturing costs$enter variable manufacturing costs in dollars

$enter variable manufacturing costs in dollars

$enter variable manufacturing costs in dollars

Fixed manufacturing costsenter fixed manufacturing costs in dollars

enter fixed manufacturing costs in dollars

enter fixed manufacturing costs in dollars

Purchase priceenter the purchase price in dollars

enter the purchase price in dollars

enter the purchase price in dollars

Total annual cost$enter total annual cost in dollars

$enter total annual cost in dollars

$enter total annual cost in dollars

The decision should be to select between make and buy

makebuy

the part.