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Novak Manufacturing incurs unit costs of $7.00 ( $5.00 varlable and $2.00 fixed) in making a sub-assembly part for its finithed product A supplier offers
Novak Manufacturing incurs unit costs of $7.00 ( $5.00 varlable and $2.00 fixed) in making a sub-assembly part for its finithed 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 at fised costs. Prepare an analysis showing the total cost spvings, if any that Novak wil realize by buving the part (Round per unit enswers to 2 dechimet ploces, eg. 15.25, If an amount reduces the net income then enter with a negotive sign preceding the number. eg -15,000 cr poren therik 29 (15,000)
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