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Vintech Manufacturing

Price: $1.99

BE23-4 Vintech Manufacturing incurs unit costs of $8 ($5 variable and $3 fixed) in
making a subassembly part for its finished product. A supplier offers to make 10,000 of
the part at $5.30 per unit. If the offer is accepted, Vintech will save all variable costs but
no fixed costs. Prepare an analysis showing the total cost saving, if any, Vintech will realize
by buying the part.

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