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Crane Industries incurs unit costs of $6 ( $4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers

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Crane Industries incurs unit costs of $6 ( $4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 13,500 of the assembly part at $5 per unit. If the offer is accepted, Crane will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Crane 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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