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Question 1 Emil 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

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Question 1 Emil 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 16,200 of the parts for $5.40 per unit. If it accepts the offer, Emil will save all variable costs and $1 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Emil 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, e.g. (15,000).) Net Income Increase Per Unit Make Buy (Decrease) Number of units; 16200 Variable manufacturing costs 5.00 Fixed manufacturing costs 3 Purchase price 5.40 Total annual cost The decision should be to buy the part LINK TO TEXT Question Attempts: 0 of 3 used

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