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 18,700 of the parts for $5.70 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).)

Net Income Increase (Decrease) Per Unit Make Buy Number of units: 18700 Variable manufacturing costs 5.30 99110 99110 > X Fixed manufacturing costs 3.00 56100 162690 218790 Purchase price 5.7 106590 106590 x X Total annual cost 155210 269280 424490 buy the part The decision should be to