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Cultumber Industries incurs unit costs of $8 ( $5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers

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Cultumber Industries incurs unit costs of $8 ( $5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 12,400 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) The decision shouid be to the part

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