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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
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 10,900 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).)
enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | |||||
enter fixed manufacturing costs in dollars | enter fixed manufacturing costs in dollars | enter fixed manufacturing costs in dollars | |||||
enter the purchase price in dollars | enter the purchase price in dollars | enter the purchase price in dollars | |||||
enter total annual cost in dollars | enter total annual cost in dollars | enter total annual cost in dollars |
select between make and buy buymake |
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