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Flo Industries incurs unit costs of $24 ($18 variable and $6 fixed) in making an assembly part for its finished product. A supplier offers to

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Flo Industries incurs unit costs of $24 ($18 variable and $6 fixed) in making an assembly part for its finished product. A supplier offers to make 20,000 units of the assembly part at $17 per unit. If the offer is accepted, Flo will save all the variable costs but no fixed costs. What is the correct decision and why? BUY and SAVE $7 per unit BUY and SAVE $20,000 EITHER choice is the same MAKE and SAVE $20,000

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