Question
Bonita manufacturing incurs unit cost of $7,30 ($5.30 variable and $2.00 fixed) in making a sub-assembly part for its finished products. A supplier offers to
Bonita manufacturing incurs unit cost of $7,30 ($5.30 variable and $2.00 fixed) in making a sub-assembly part for its finished products. A supplier offers to make 13,500 of the parts for $5.80 per unit. if accepts the offer, Bonota will save all variable costs and $1.00 of fixed costs.
Prepare an analysis showing the total cost savings, if any, that Bonita will realize by buying the part.( Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g (15,000).)
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