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Manson Industries makes an assembly part for its finished product. A supplier has offered to produce the assembly part. Information concerning the assembly part follows. Unit cost to make product Variable Fixed Offer by supplier to produce Per unit Number of units $ 5.00 3.00 6.00 10,000 If the offer is accepted, Manson will save all variable costs but no fixed costs. formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part. Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total Decision to be made $ Make 50,000 $ 30,000 - 80,000 $ Buy 30,000 60,000 90,000 Net Income Increase (Decrease) $ 50,000 $ - (60,000) (10,000)

Manson Industries makes an assembly part for its finished product. A supplier has offered to produce the assembly part. Information concerning the assembly part follows. Unit cost to make product Variable Fixed Offer by supplier to produce Per unit Number of units $ 5.00 3.00 6.00 10,000 If the offer is accepted, Manson will save all variable costs but no fixed costs. formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part. Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total Decision to be made $ Make 50,000 $ 30,000 - 80,000 $ Buy 30,000 60,000 90,000 Net Income Increase (Decrease) $ 50,000 $ - (60,000) (10,000)

FINANCIAL ACCOUNTING
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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Manson Industries makes an assembly part for its finished product. A supplier has offered to produce the assembly part. Information concerning the assembly part follows. Unit cost to make product Variable Fixed Offer by supplier to produce Per unit Number of units $ 5.00 3.00 6.00 10,000 If the offer is accepted, Manson will save all variable costs but no fixed costs. formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part. Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total Decision to be made $ Make 50,000 $ 30,000 80,000 $ Buy 30,000 60,000 90,000 Net Income Increase (Decrease) $ 50,000 $ - (60,000) (10,000)
Transcribed Image Text:Manson Industries makes an assembly part for its finished product. A supplier has offered to produce the assembly part. Information concerning the assembly part follows. Unit cost to make product Variable Fixed Offer by supplier to produce Per unit Number of units $ 5.00 3.00 6.00 10,000 If the offer is accepted, Manson will save all variable costs but no fixed costs. formulas with cell references to the Problem area or work area as indicated. Type the number zero in any field in the Make or Buy columns for which there is no cost. Prepare an analysis using Excel's IF function showing the total cost saving, if any, Manson will realize by buying the part. Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total Decision to be made $ Make 50,000 $ 30,000 80,000 $ Buy 30,000 60,000 90,000 Net Income Increase (Decrease) $ 50,000 $ - (60,000) (10,000)
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