Sheridan 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 14.000 of the assembly part at $6 per unit. If the offer is accepted, Sheridan will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sheridan will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to Make the part. $ Buy $ Net Income Increase (Decrease)

Sheridan industries incursunit costs of $6 (\$4 variable and $2 fixed) in making an assembly part for its finished product A supplier offers to make 14,000 of the assembly part at $6 per unit. If the offer is accepted, Sheridan will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sheridan will realize by buying the part, (Enter negative amounts usins either a negotive sign preceding the number es, 45 or parentheses es. (45).) The decision should be to the part