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Sheffield Manufacturing incurs unit costs of $7.40($5.40 variable and $2.00 fixed) in making a sub-assembly...

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Accounting

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Sheffield Manufacturing incurs unit costs of $7.40($5.40 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,200 of the parts for $6.00 per unit. If it accepts the offer, Sheffield will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Sheffield will realize by buying the part. (Round per unit answers to 2 decimal places, es. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, es -15, 000 or parenthesis, es (15,000).) decimal places, eg. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, eg - 15,000 or porenthesis, es. (15,000) )

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