Question: Your answer is partially correct. Try again. Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for
Your answer is partially correct. Try again. Manson Industries incurs unit costs of $6 ($4 variable and $2 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, if any, Manson 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 56,000 69,200 34,600 86,500 86,500 Total annual cost 84,000 12,110 17300 The decision should be to HaRe U make 3 the part
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