Emil Manufacturing incurs unit costs of $8.30 ($5.30 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,000 of the parts for $5.90 per unit. If it accepts the offer, Emil will save all variable costs and $1 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Emil 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		Buy		Net Income Increase (Decrease)
Number of units:		enter a number of units
select an item

				$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item

				enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item

				enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item

						$enter a total amount		$enter a total amount		$enter a total amount

The decision should be to select an option

.