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Pharoah Manufacturing incurs unit costs of $8.00 ( $5.00 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers

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Pharoah Manufacturing incurs unit costs of $8.00 ( $5.00 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 16,800 of the parts for $5.50 per unit. If it accepts the offer. Pharoah will save all variable costs and 51.00 of fixed costs Prepare an analysis showing the total cost savings, if any, that Pharoah 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 nesotive sign preceding the number, eg. 15,000 or perenthesis, eg (15.000)}

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