Marigold 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 10,300 of the assembly part at $6 per unit. If the offer is accepted, Marigold will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Marigold will realize by buying the part

The preparation of an incremental analysis is given below

Explanation:

The preparation of an incremental analysis is shown below:

Particulars                           MakeBuy               Net Income - Increase/(Decrease)

Variable Manufacturing Cost

(10,300 × $5)                        $51,500             -                  $51,500

Fixed Manufacturing Cost

(10,300 × $3)                        $30,900    $30,900           -                    

Purchase Price (10,300 × 6)         -      $61,800             $(61,800)

Total Annual Cost               $82,400    $92,700       $(10,300)

By above calculation, we can interpret that the marigold should make the part as it would became cheaper but it also saves the cost of $10,300

answer; /// (b) i believe its that is paid to state and federal taxing authorities;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know