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Business, 07.05.2021 02:00 mrashrafkotkaat

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 13,500 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Required:
Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.

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