F Ch 20 Homework Question 3 of 11

O Homework Question 3 of 1 1 Current Attempt in Progress Ivanhoe 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 10,400 of the assembly part at $6 per unit. If the offer is accepted, Ivanhoe will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Ivanhoe will realize by buying the part. (Enter negative amounts usingeither a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Buy Net Income Increase (Decrease) Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to Make v the part.