Question: Your answer is partially correct. Try again. Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for
Your answer is partially correct. Try again. Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 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.c.45 or parentheses e.o. (45).) Net Income Increase (Decrease) Variable manufacturing costs Fixed manufacturing costs Purchase price 128100 Total annual cost 14640 The decision should be to the part
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