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Question 7 Oriole Industries Incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier

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Question 7 Oriole Industries Incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 13,500 of the assembly part at $5 per unit. If the offer is accepted, Orole will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Oriole will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number c.g. -45 or parentheses e.g. (45).) Net Income Make Increase (Decrease) Variable manufacturing costs Buy Fixed manufacturing costs Purchase price ndy Total annual cost The decision should be the part. make buy Question Attempts: 0 of 1 used

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