Current Attempt in Progress

Coronado Manufacturing incurs unit costs of $$8\mathrm{.}30($ $$5\mathrm{.}30$ variable and $$3\mathrm{.}00$ fixed$)$ in making a sub$-$assembly part for its finished

product. A supplier offers to make $18,700$ of the parts for $$5\mathrm{.}70$ per unit. If it accepts the offer, Coronado will save all variable costs

and $$1\mathrm{.}00$ of fixed costs.

Prepare an analysis showing the total cost savings, if any, that Coronado will realize by buying the part. $($Round per unit answers to $2$

decimal places, e$.$g$.15\mathrm{.}25.$ If an amount reduces the net income then enter with a negative sign preceding the number, e$.$g$.-15,000$ or

parenthesis, eg$.(15,000).)$

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