Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. leatherstuff currently buys zippers from an outside supplier for $3.50 each (the same price that style receives). assume that style and leatherstuff have agreed on a transfer price of $3.25. what are the total cost savings for leatherstuff?

$22,500

Explanation:

The computation of the total cost saving is shown below:

= Cost saving × number of zippers needed

= $0.25 × 90,000 zippers

= $22,500

We simply multiply the cost saving with the needed zipper so that accurate amount can come

The cost saving would be

= Outside supplier price - transfer price

= $3.50 - $3.25

= $0.25

All other information which is given is not relevant. Hence, ignored it

cool i use it all the time

no, a company likes to look at potential employees that are professional, well mannered, clean, honest, etc. don't show up looking/acting like a clown. (unless that's your job xd) hope this ! =^-^=