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Ivanhoe Manufacturing incurs unit costs of $ 8 . 0 0 ( $ 5 . 0 0 variable and $ 3 . 0 0 fixed
Ivanhoe Manufacturing incurs unit costs of $ $ variable and $ fixed in making a subassembly part for its finished product. A supplier offers to make of the parts for $ per unit. If it accepts the offer, Ivanhoe will save all variable costs and $ of fixed costs.
Prepare an analysis showing the total cost savings, if any, that Ivanhoe will realize by buying the part. Round per unit answers to decimal places, eg If an amount reduces the net income then enter with a negative sign preceding the number, eg or parenthesis, eg
Per Unit
Make
Number of units:
Variable manufacturing costs
The decision should be to
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