Kmeciak Corp. incurs unit costs of $6.20 ($5.10 variable and $1.10 fixed) in making a gear...

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Kmeciak Corp. incurs unit costs of $6.20 ($5.10 variable and $1.10 fixed) in making a gear for its finished product. A supplier offers to make 8,300 of the assembly part at $5.30 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 $ Kmeciak Corp. incurs unit costs of $6.20 ($5.10 variable and $1.10 fixed) in making a gear for its finished product. A supplier offers to make 8,300 of the assembly part at $5.30 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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To determine the net extra cost or savings we need to compare the total c... View the full answer