Manson 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 16,900 of the assembly part at $5 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.
| Make | Buy | Net Income Increase (Decrease) | |
| Variable Manu Costs | $__________ | $__________ | $__________ |
| Fixed Many Costs | $__________ | $__________ | $__________ |
| Purchase Price | $__________ | $__________ | $__________ |
| Total Anual Cost | $__________ | $__________ | $__________ |
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