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Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost...

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Accounting

Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,200 remotes is as follows:
Cost
Direct materials $ 66,300
Direct labor $ 56,100
Variable overhead $ 30,600
Fixed overhead $ 51,000
Total $ 204,000
Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit.
Required:
Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes?
Compute the difference in cost per unit between making and buying the remotes if $20,400 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes?
What is the change in net income if fixed cost of $20,400 can be avoided and Frannie could rent out the factory space no longer in use for $20,400?

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