Sandhill Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 18,300 of the assembly part at $6 per unit. If the offer is accepted, Sandhill will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sandhill will realize by buying the part

Sandhill Industries incurs unit costs of $7 ( $5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 18,300 of the assembly part at $6 per unit. If the offer is accepted, Sandhill will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sandhill will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) The decision should be to the part