Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. manson industries incurs unit costs of $7 ($5 vari

Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an...

90.2K

Verified Solution

Question

Accounting

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 18,300 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).)

Make Buy Net Income Increase (Decrease)
Variable manufacturing costs $enter variable manufacturing costs in dollars $enter variable manufacturing costs in dollars $enter variable manufacturing costs in dollars
Fixed manufacturing costs enter fixed manufacturing costs in dollars enter fixed manufacturing costs in dollars enter fixed manufacturing costs in dollars
Purchase price enter the purchase price in dollars enter the purchase price in dollars enter the purchase price in dollars
Total annual cost $enter total annual cost in dollars $enter total annual cost in dollars $enter total annual cost in dollars

The decision should be to select between make and buy buymake the part.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is the benefit of studying culture from the anthropological perspective for the individual? For society?

Psychology
Q

What abilities define our concept of an intelligent person in Saudi Arabia? What abilities do you...

Psychology
Q

49 System of Particles and Rotational Motion 34 Four rods of mass M and length...

Physics
Q

35 A body is moving along a straight line starting from rest with constant power...

Physics
Q

2 Match each of the volume formulas given Column A with the correct description of...

Basic Math
Q

3 2 1 1 2 3 Determine the period MA 4 6 8 10 12...

Algebra
Q

For the function, y=-4x +2x-x+5,a) State which finite difference will be constant?b) Determine the value...

Algebra
Q

Solve for x 1 L x d X Simplify your answer

Algebra
Q

When sending out bank confirmation requests, which of the following statements is FALSE? A: The...

Accounting
Q

Variable expenses are $8 per Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells...

Accounting
Q

Exercise 3-5 (Algo) Journal Entries and T-accounts [LO3-1, LO3-2] The Polaris' Company uses a job-order...

Accounting
Q

Question 66 of 76 One By changed her investerary or poster se property Ametime in...

Accounting