QuestionSunland 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, Sunland will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sunland will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) \begin{tabular}{|c|c|c|c|c|c|} \hline & & & Buy & & \begin{tabular}{l} Net Income \\ Increase (Decrease) \end{tabular} \\ \hline Variable manufacturing costs & \$ & \$ & & \$ & \\ \hline Fixed manufacturing costs & & & & & \\ \hline Purchase price & & & & & \\ \hline Total annual cost & \$ & \$ & & \$ & \\ \hline \end{tabular}
The decision should be to $\square$ the part.