Question
Bramble Manufacturing incurs unit costs of $8.40 ($5.40 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to
Bramble Manufacturing incurs unit costs of $8.40 ($5.40 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 19,900 of the parts for $5.80 per unit. If it accepts the offer, Bramble will save all variable costs and $1.00 of fixed costs Prepare an analysis showing the total cost savings, if any, that Bramble 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).) Per Unit Make
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