(6 Questions, 10 Marks) Huimin Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 36,000 timer units annually. The cost per unit for the timer is as follows: Description Cost Direct materials 9.60 Direct labour 3.20 Variable overhead 2.40 Fixed overhead 5.60 Total cost 20.80 Of the total fixed overhead assigned to the timers, $72,000 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead. An outside supplier has offered to sell the timers to Huimin Inc. for $17.40 per unit. Use the above information to answer all of the following questions. 4 Next Page Page 5 of 9 16 Questions, 10 Marks) Huimin Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 36,000 timer units annually. The cost per unit for the timer is as follows: Description Cost Direct materials 9.60 Direct labour 3.20 Variable overhead 2.40 Fixed overhead 5.60 Total cost 20.80 of the total fixed overhead assigned to the timers, $72,000 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed Overhead An outside supplier has offered to sell the timers to Huimin Inc. for $17.40 per unit. Use the above information to answer all of the following questions, Question 23 (1 point) Saved If there was no other alternative use for the facilities that is currently used to produce the timers, should Huimin Inc. make or buy the timers? O BUY Ob) Indifferent Od Make Question 24 (3 pts) What is the most that Huimin Inc would be willing to pay an outside supplier for one unit of the timer? A Question 25 11 point) If Huimin Inc. buys the timers, would their operating income increase, decrease, or stay the same? a) Increase b) Decrease Od Stay the same Question 26 12 points) Saved Huimin Inc boys the timer, by how much would their operating income change