Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 --/2 View Policies Current Attempt in Progress Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly
Question 2 --/2 View Policies Current Attempt in Progress Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 12,400 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total annual cost $ HA $ The decision should be to the part. buy make Taythealand Media Current Attempt in Progress At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. A foreign wholesaler offers to buy 3,580 units at $28 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Costs-Variable manufacturing Shipping Net income $ $ The special order should be rejected accepted
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started