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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

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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 nofoed costs. Prepare an analysis showing the total cost saving. If any, that Ivanhoe will realize by buying the part. (Enter negative amounts using either a negative siten preceding the number es. -45 of parentheses (45) Make Net Income Increase (Decrease) Buy Variable manufacturing costs $ Fixed manufacturing costs Purchase price $ 5 Total annual cost The decision should be to the part

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