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Windsor Manufacturing incurs unit costs of $8.30 ($5.30 variable and $3.00 xed) in making a sub-assembly part for its nished product. A supplier offers to
Windsor Manufacturing incurs unit costs of $8.30 ($5.30 variable and $3.00 xed) in making a sub-assembly part for its nished product. A supplier offers to make 12,000 of the parts for $5.90 per unit. If it accepts the offer, Windsor will save all variable costs and $1.00 of xed costs. Prepare an analysis showing the total cost savings, if any. that Windsor will realize by buying the part. (Round per unitanswers to 2 decimal places, as. 15.25. if an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, eg. (15,000).) Per Unit Make Number of units: v 35 $ v v v $ The decision should be to v
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