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The Blade Division of Axe Company produces hardened steel blades. Sales $ 15,154.54 total Variable costs $ 10,111.22 total Fixed costs $ 4,444.33 total Unit

The Blade Division of Axe Company produces hardened steel blades.
Sales $ 15,154.54 total
Variable costs $ 10,111.22 total
Fixed costs $ 4,444.33 total
Unit sales per unit 11,222
A contract company has offered to sell Axe Company the steel blades used in the Forestry Division
for $1.23 per unit. $2,543.21 of the fixed cost for that division can be saved by contracting out
the steel blades.
What will be the price difference between continuing to make the steel blades and buying the steel blades?
And should the company continue to make the steel blades or buy the steel blades?

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