Current Attempt in Progress Blossom Industries incurs unit costs of $7 ($4 variable and $3 foxed) in making an assembly part for its finished product. A supplier offers to make 10,900 of the assembly part at $5 per unit. If the offer is accepted, Blossom will save all variable costs but no feed costs Prepare an analysis showing the total cost saving, if any, Blossom will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Net Income Increase (Decrease) Make Buy Variable manufacturing costs S 43.600 Fixed manufacturing costs 32700 32700 Purchase price Total annual cost 43600

Current Attempt in Progress Blossom Industries incurs unit costs of $7 ($4 variable and $3 foxed) in making an assembly part for its finished product. A supplier offers to make 10,900 of the assembly part at $5 per unit. If the offer is accepted, Blossom will save all variable costs but no feed costs Prepare an analysis showing the total cost saving, if any, Blossom will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Net Income Increase (Decrease) Make Buy Variable manufacturing costs S 43.600 Fixed manufacturing costs 32700 32700 Purchase price Total annual cost 43600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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