0.86/1 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct Kingbird Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 18.900 of the parts for $5.60 per unit. If it accepts the offer, Kingbird will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Kingbird 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, e.g.-15,000 or parenthesis, e.g. (15,000).) Net Income Increase Buy (Decrease) Per Unit Make Per Unit 5.00 2.00 5.60 The decision should be to $ buy the part Make 94.500 37.800 0 132.300 $ Buy 0 18.900 105,840 105,840 $ Net Income Increase (Decrease) 94,500 37.800 (105,840) 26.460 Number of units: Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to buy the part 18,900 Per Unit 5.00 2.00 5.60 Make 94.500 37,800 0 132.300