Wuetiock Manufacturing incurs unit costs of $8.50 (\$5.50 variable and $3.00 fxed) in making a...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Wuetiock Manufacturing incurs unit costs of $8.50 (\$5.50 variable and $3.00 fxed) in making a sub-assembly part for its finished product. A supplier offers to make 18,600 of the parts for $6.10 per unit. If it accepts the offer, Metlock will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Metiock will realize by buying the part. (Round per unit onswes to 2 decimal places, eg- 15.25. If an amount reduces the net income then enter with a negathe sian preceding the rumber, eg 15,000 or parenthesis, eg. (15,000))
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
