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Manson Industries incursuit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make
Manson Industries incursuit costs of $8 ($5 variable and $3 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. I any, Manson will realize by buying the part (Enter negative amounts using elther a negative sign preceding the numberes.-45 or parentheses es (451) Make Buy Net Income Increase (Decrease) $ $ Variable manufacturing costs Fixed manufacturing costs Purchase price 5 $ Total annual cost $ The decision should be to the part DU 0 * 8 7 9 o 3 4 8 5 6 u o e r t X d f f 09 h j V b n C E
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