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Knowledge Check Kmeciak Corp. incurs unit costs of $5.70( $4.60 variable and $1.10 fixed)...

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Accounting

Knowledge Check
Kmeciak Corp. incurs unit costs of $5.70( $4.60 variable and $1.10 fixed) in making a gear for its finished product. A supplier offers to make 8,100 of the assembly part at $4.70 per unit. If the offer is accepted, Kmeciak will save all variable costs but no fixed costs. What is the amount of the net extra cost or net cost savings that Kmeciak will realize by buying the part?
Net extra cost or savings
$
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