Please do not give image format Number of units:Variable manufacturing costsFixed manufacturing costsTotal annual costThe decision should be toVbuy the part18600+A$5.503.005.90$$10230055800158100 Metlock Manufacturing incurs unit costs of $8.50 ($5.50 variable and $3.00 fixed) in making a sub-assembly part for its finishedproduct. A supplier offers to make 18,600 of the parts for $6.10 per unit. If it accepts the offer, Metlock will save all variable costs and$1.00 of fixed costs.Prepare an analysis showing the total cost savings, if any, that Metlock will realize by buying the part. (Round per unit answers to 2decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 orparenthesis, e.g. (15,000).)Number of units:Variable manufacturing costsFixed manufacturing costs18600$Per Unit5.503.005.90$Make7.0010230055800

In case of decision of make or buy,we should select that option under which our cost will be…

Metlock Manufacturing incurs unit costs of $8.50 ($5.50 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 18,600 of the parts for $6.10 per unit. If it accepts the offer, Metlock will save all variable costs ar $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Metlock 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).) 146644651

Metlock Manufacturing incurs unit costs of $8.50 ($5.50 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 18,600 of the parts for $6.10 per unit. If it accepts the offer, Metlock will save all variable costs ar $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Metlock 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).) 146644651

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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