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Accounting: Beamer Manufacturing incurs unit costs of $7.75

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Beamer Manufacturing incurs unit costs of $7.75 ($4.93 variable and $2.82 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 11,000 of the assembly part at $5.33 per unit. If the offer is accepted, Beamer will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Beamer will realize by buying the part.
Submitted: 5 years ago.
Category: Homework
Expert:  Neo replied 5 years ago.

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