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1. Kingbird Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 xed) in making a sub-assembly part for its nished product. A supplier offers
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Kingbird Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 xed) in making a sub-assembly part for its nished product. A supplier offers to make 18,900 of the parts for $5.60 per unit. If it accepts the offer, Kingbird will save all variable costs and $1.00 of xed costs. Prepare an analysis showing the total cost savings, if any, that Kingbird will realize by buying the part. (Roundper unit answers to 2 decimal places, as. 15.25. if an amount reduces the net income then enter with a negative sign preceding the number, eg. -15,000 or parenthesis, e3. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases Sell Process Further Net Income Increase (Decrease) v processed furtherStep by Step Solution
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