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Question 3 Marigold Industries incurs unit costs of $8 (95 variable and $3fied) in making an assembly part for its finished p


Question 3 Marigold Industries Incurs unit costs of $8 ($5 variable and $3 Fixed) in making an assembly part for its finished
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Answer #1
Marigold Industries
Make Buy Net Income Inc. ( dec.)
Variable Mfg. Costs ( 5 * 10300 ) 51500 -51500
Fixed Mfg. costs( 3 * 10300 ) 30900 30900 0
Purchase price( 6 * 10300 ) 61800 -61800
Total Annual Cost 82400 92700 -10300
The decision should be to make the part.
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