(Solved): Blue Spruce Manufacturing incurs unit costs of \( \$ 7.40(\$ 5.40 \) variable ...

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Blue Spruce Manufacturing incurs unit costs of \( \$ 7.40(\$ 5.40 \) variable and \( \$ 2.00 \) fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,100 of the parts for \( \$ 6.00 \) per unit. If it accepts the offer, Blue Spruce will save all variable costs and \( \$ 1.00 \) of fixed costs. Prepare an analysis showing the total cost savings, if any, that Blue Spruce will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. \( -15,000 \) or parenthesis, e.g. \( (15,000) \). Blue Spruce Manufacturing incurs unit costs of \( \$ 7.40 \) ( \( \$ 5.40 \) variable and \( \$ 2.00 \) fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,100 of the parts for \( \$ 6.00 \) per unit. If it accepts the offer, Blue Spruce will save all variable costs and \( \$ 1.00 \) of fixed costs. Prepare an analysis showing the total cost savings, if any, that Blue Spruce will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g. \( -15,000 \) or parenthesis, e.g. (15,000).)