Question $7$ of $10$

Sheridan Manufacturing incurs unit costs of $$7\mathrm{.}00($ $$5\mathrm{.}00$ variable and $$2\mathrm{.}00$ fixed$)$ in making a sub$-$assembly part for its finished product. A supplier offers to make $10,000$ of the parts for $$5\mathrm{.}40$ per unit. If it accepts the offer, Sheridan will save all variable costs and $$1\mathrm{.}00$ of fixed costs.

Prepare an analysis showing the total cost savings, if any, that Sheridan will realize by buying the part. $($Round per unit answers to $2$ decimal places, eg$.15\mathrm{.}25.$ If an amount reduces the net income then enter with a negative sign preceding the number, eg$.-15,000$ or parenthesis, e$.$g$.(15,000).)$

Per Unit

Make

Number of units: