Solution-Prepare an analysis showing the total cost savings

Prepare an analysis showing the total cost savings

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Reference no: EM132861466

Problem - Sweet Acacia Manufacturing incurs unit costs of $7.50 ($5.50 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 20,000 of the parts for $6.10 per unit. If it accepts the offer, Sweet Acacia will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Sweet Acacia will realize by buying the part.

Reference no: EM132861466

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Prepare an analysis showing the total cost savings

Reference no: EM132861466

Reference no: EM132861466

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