Beamer manufacturing incurs unit costs of 6 5 variable and

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Beamer Manufacturing incurs unit costs of $6 ($5 variable and $1 fixed) in making a subassembly part for its finished product. A supplier offers to make 19,000 of the part at $6.10 per unit. If the offer is accepted, Beamer will save all variable costs but no fixed costs.

Prepare an analysis showing the total cost saving, if any, Beamer will realize by buying the part. What should they do? (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

Reference no: EM13575978

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