Brief Exercise 26-4 Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed)...
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Brief Exercise 26-4 Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for iks finished product. A suppler offers to make 10,000 of the assembly part at 5 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.o. 45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Bury Variable manufacturing costs Foxced manufactuing costs Purchase price Total anual cost The decision should be to the part
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