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Novak Manufacturing incurs unit costs of $7.00 ( $5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers

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Novak Manufacturing incurs unit costs of $7.00 ( $5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,500 of the parts for $5.60 per unit. If it accepts the offer, Novak will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Novak will realize by buying the part. (Round per unit answers to 2 decimal places, es. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, eg. 15,000 or parenthesis, eg. (15,000) Number of units: The decision should be to eTextbook and Media Srue for Later Attempts: 0 of 3 used Submit Arswer

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