Provide answer the accounting question Manson Industries incurs unit costs of $7.61($4.14 variable and $3.47 fixed) in making asubassembly part for its finished product. Asupplier offers to make 17,000 of theassembly part at $5.40 per unit. If the offer isaccepted, Manson will save all variable costsbut no fixed costs.Prepare an analysis showing the total costsaving, if any, Manson will realize by buyingthe part.

Step 1:- Define Relevant CostsFor making a short-term decision, the incremental or differential…

Answered: Manson Industries incurs unit costs of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Oriole Manufacturing incurs unit costs of $7.40 ($5.40 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,600 of the parts for $5.80 per unit. If it accepts the offer, Oriole will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Oriole will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
M&S 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, M&S will save all variable costs but no fixed costs. 1. Prepare the incremental analysis for the decision to make or buy the products. 2. Should M&S Industries make or buy the products.
Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 10,400 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).) Net Income Make Increase (Decrease) Buy $ $ Variable manufacturing costs $ Fixed manufacturing costs Purchase price $ $ Total annual cost the part. The decision should be to 3:02 PM ) 11/10/20 hp tA A
Blossom Industries incurs unit costs of $7 ($4 variable and $3 fixed) 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 fixed costs. Prepare an analysis showing the total cost saving, if any, that Blossom 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).) Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to eTextbook and Media +A Make ◆ the part. $ Buy LA $ Net Income Increase (Decrease)
Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net IncomeIncrease (Decrease) Variable manufacturing costs $enter a dollar amount $enter a dollar amount $enter the difference between the two previous amounts in the row Fixed manufacturing costs enter a dollar amount enter a dollar amount enter the difference between the two previous amounts in the row Purchase price enter a dollar amount enter a dollar amount enter the difference between the two previous amounts in the row Total annual cost…
Crane 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 13,500 of the assembly part at $5 per unit. If the offer is accepted, Crane will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Crane 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).) Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to $ Make the part $ Buy $ $ Net Income Increase (Decrease)
Ivanhoe Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 17,800 of the assembly part at $5 per unit. If the offer is accepted, Ivanhoe will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Ivanhoe 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).) Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to $ $ make Make the part. 43600 32700 i 76300 $ $ Buy i 32700 54500 87200 $ Net Income Increase (Decrease) 43600 i -54500 -10900 V A C Ac Q Ac
Wildhorse Industries incurs unit costs of $8 ($5 variable and $3 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, Wildhorse will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Wildhorse 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).) Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total annual cost $ Make Buy Net Income Increase (Decrease) $ $ The decision should be to the part. $ $
Carla Vista Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 16,800 of the assembly part at $5 per unit. If the offer is accepted, Carla Vista will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Carla Vista 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).) Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total annual cost $ Make LA Buy LA LA Net Income Increase (Decrease)
Urmila ben
Charleston Affair currently makes the King Component, incurring variable costs of $18 per unit and fixed costs of $4 per unit. The company has the option to purchase the component for $20 per unit. Prepare a differential analysis to determine if the company should make (Alternative 1) or buy (Alternative 2) the King Component. Assume that the fixed costs will be incurred in each situation up to 40,000 units. Determine at what want point of sales does it make sense to produce rather than buy)
Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.10; direct labor, $23.10, and overhead, $15.10. An outside supplier has offered to sell the product to Wheeler for $42.56. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying. Multiple Choice $3.75 savings per unit. $1.30 cost per unit. $1.30 savings per unit. $3.75 cost per unit. $4.32 cost per unit.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS