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Andrews Co. can purchase 20,000 units of Part XYZ from a supplier for $18 per part. Andrews' per unit manufacturing costs for 20,000 units is ______.Cost Per Unit TotalVariable $12 $240,000manufacturingcostSupervisor $3 $60,000salaryDepreciation $1 $20,000Allocated $7 $140,000fixedoverheadIf the part is purchased, the supervisor position would be eliminated. The special equipment has no other use and no salvage value. Total allocated fixed overhead would be unaffected by the decision. Should the company buy the part or continue to make it?continue to make — $60,000 advantage.The avoidable costs of making the product are the variable costs plus the supervisor salary or $15 per unit. The total savings is $60,000 ($18 buy price - $12 variable cost - $3 supervisor salary = $3 advantage to make X 20,000 units).

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Andrews Co. can purchase 20,000 units of Part XYZ from a supplier for $18 per part. Andrews' per unit manufacturing costs for 20,000 units is $15 per unit.

Definition: purchase in accounting refers to the taking manage of a given item or provider by way of paying a set amount of cash. Conversely, it's far the change of money for a selected desirable or service. The process is usually undertaken with the aid of people or businesses in want of gadgets or offerings.

Purchase is the organized acquisition of goods and offerings on behalf of the buying entity. shopping sports are had to make sure that needed gadgets are received in a well-timed way and at a reasonable fee.

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