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The cost to Swank Company of manufacturing 20,000 units of a particular part is $255,000, of which $100,000 is fixed and $155,000 is variable. The
The cost to Swank Company of manufacturing 20,000 units of a particular part is $255,000, of which $100,000 is fixed and $155,000 is variable. The company can buy the part from an outside supplier for $8 per unit. Fixed costs will remain the same regardless of Swank's decision. Prepare a comparative schedule. (Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Make the Part Buy the Part Incremental Analysis Manufacturing costs: Variable cost $ $ $ Fixed manufacturing overhead $ $ $ Purchase price of part $ $ $ Totals $ $ $ Assuming no alternative use for the plant facilities, should the company buy the part or continue to manufacture it? Neither Make Buy
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