View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct 0.86/1 Kingbird Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 18.900 of the parts for $5.60 per unit. If it accepts the offer, Kingbird will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Kingbird will realize by buying the part. (Round per unit answers to 2 decimal places, eg. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, es-15,000 or parenthesis, e.g. (15,000).) Per Unit Make Buy Net Income Increase (Decrease) Per Unit Make Buy Net Income Increase (Decrease) 5.00 $ 94.500 $ $ 94,500 200 5.60 The decision should be to buy the part 37.800 18.900 105,840 37.800 (105.840) 132.300 105,840 26.460 Number of units: Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision should be to buy the part Per Unit 18,900 Make 5.00 $ 94.500 2.00 5.60 37.800 132.300 0