Marigold Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 10,300 of the assembly part at $6 per unit. If the offer is accepted, Marigold will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Marigold will realize by buying the part
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Home » Business » Marigold Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 10,300 of the assembly part at $6 per unit.