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Tamarisk Manufacturing incurs unit costs of $7.20 ( $5.20 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers

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Tamarisk Manufacturing incurs unit costs of $7.20 ( $5.20 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 17,200 of the parts for $5.70 per unit. If it accepts the offer. Tamarisk will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Tamarisk will realize by buying the part. (Round per unit answers to 2 decimal places, eg. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, eg. 15,000 or parenthesis, eg. (15,000).)

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