A company provides the following per-unit cost information for a product that it produces and...
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Accounting
A company provides the following per-unit cost information for a product that it produces and sells. This information is based on a volume of 5,000 units per month: Recently, a supplier approached the company and offered to produce their product ( 5,000 units per month) for $100 per unit. If they accept the supplier's offer, no fixed overhead can be avoided, but they would use the production facilities to produce a new product that would generate a total contribution margin of $51,000 per month. What is the total expected monthly financial impact (i..e, how will cash flows change) if they accept the supplier's offer? (Make sure to calculate the total impact, not the per-unit impact; indicate an increase with a positive number and a decrease with a negative number.)
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