Question: Question 2 --/1 View Policies Current Attempt in Progress Grouper Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly

 Question 2 --/1 View Policies Current Attempt in Progress Grouper Industries

Question 2 --/1 View Policies Current Attempt in Progress Grouper Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 16,400 of the assembly part at $6 per unit. If the offer is accepted, Grouper will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Grouper will realize by buying the part. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Make Net Income Increase (Decrease) DUY Variable manufacturing costs $ Fixed manufacturing costs Purchase price Total annual cost The decision should be to the part. e Textbook and Media Save for Later Attempts: unlimited Submit

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