Wildhorse Industries incurs unit costs of $8 ( $5 variable and $3 fixed) in making...
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Wildhorse 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 14,000 of the assembly part at $6 per unit. If the offer is accepted, Wildhorse will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Wildhorse will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) The decision should be to the part
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