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accounting not algebra Sheffield Industries incurs unit costs of $8 ($5 variable and...

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Accounting

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accounting not algebra
Sheffield Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 11,500 of the assembly part at $6 per unit. If the offer is accepted Sheffield will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Sheffield will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Net Income Increase (Decrease) Buy Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost

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