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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 freed 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 e.g. (45))
Net Income
Make
Buy
Increase (Decrease)
$
Variable manufacturing costs
$
43.600
5
Fixed manufacturing costs
32700
Purchase price
Total annual cost
The decision should be to
Save for Later
S
the part.
$
43600
$
Attempts: 0 of 1 used Submit A
32700
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