Business, 14.10.2021 01:40 corbino710
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.
Required:
Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Answers: 3
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