Solution-Prepare an analysis showing the total cost saving

Prepare an analysis showing the total cost saving

Reference no: EM13548724

Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making a subassembly part for its finished product. A supplier offers to make 10,000 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 will realize by buying the part.

Reference no: EM13548724

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Prepare an analysis showing the total cost saving

Reference no: EM13548724

Reference no: EM13548724

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