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Oriole Manufacturing incurs unit costs of ( $ 7.40 ) ( ( $ 5.40 ) variable and ( $ 2.00 ) fixed) in making a
Oriole Manufacturing incurs unit costs of \\( \\$ 7.40 \\) ( \\( \\$ 5.40 \\) variable and \\( \\$ 2.00 \\) fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,600 of the parts for \\( \\$ 5.80 \\) per unit. If it accepts the offer, Oriole will save all variable costs and \\( \\$ 1.00 \\) of fixed costs. Prepare an analysis showing the total cost savings, if any, that Oriole will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. - 15,000 or parenthesis, eg. (15,000).) ekly Assignment 7 Question 7 of 10 Per Unit Make Number of units: 10,600 Variable manufacturing costs Fixed manufacturing costs \\( \\$ \\) 5.40 Purchase price 2.00 \\( 0.48 / 1 \\) i The decision should be to buy the part
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