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Oriole Industries incurs unit costs of $6 ( $4 variable and $2 fixed) in making an assembly part for its finshed product. A supplier offers
Oriole Industries incurs unit costs of $6 ( $4 variable and $2 fixed) in making an assembly part for its finshed product. A supplier offers to make 15,000 of the assembly part at $5 per unit, If the offer is accepted, Oriole will save all variablecost but no fuxed costs. Prepare an analysis stiowing the total cost saving if any, that Oriole will realize by buying the part. (Enter negathe omounts using either a negative sign preceding the number es. -45 or parentheses es (45) The decision should be to the part
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