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OrioleIndustries incurs unit costs of $6($4variable and $2fixed) in making an assembly part for its finished product. A supplier offers to make15,000of the assembly part

OrioleIndustries incurs unit costs of $6($4variable and $2fixed) in making an assembly part for its finished product. A supplier offers to make15,000of the assembly part at $5per unit. If the offer is accepted,Oriolewill save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, thatOriolewill realize by buying the part.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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Variable manufacturing $ costs Fixed manufacturing costs Purchase price Total annual cost $ The decision should be to E the part

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