Wuetiock Manufacturing incurs unit costs of $8.50 (\$5.50 variable and $3.00 fxed) in making a...
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Wuetiock Manufacturing incurs unit costs of $8.50 (\$5.50 variable and $3.00 fxed) in making a sub-assembly part for its finished product. A supplier offers to make 18,600 of the parts for $6.10 per unit. If it accepts the offer, Metlock will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Metiock will realize by buying the part. (Round per unit onswes to 2 decimal places, eg- 15.25. If an amount reduces the net income then enter with a negathe sian preceding the rumber, eg 15,000 or parenthesis, eg. (15,000))
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