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Problem 8-24 (Part Level Submission) Sheridan Water Co, is a leading producer of greenhouse inigation systems. Currently, the company manufactures the timer unit used in each of its systems, Based on an annual production of 40,880 timers, the company has calculated the following unit costs. Direct fixed costs ndude supervisory and clarical salaries and aquipment depreciation. Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead located fixed manufacturing overhead6 $12 10(30% salaries, 70% depreciation) Total unit cost Clifton Oocks has offered to provide the timer units to Sheridan at a price of $36 per unit. If Sheridan accepts the offer, the current timer unit supervisory and clerical staff wil be laid off (al) Your answer is correct. Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decima,places, e.gs,250.) Make Buy Total relevant cost LINK TO TEXT LINK TO VIDEO Attempts: 5 of 15 used (a2) Your answer is correct. Assuming that Sheridan Water has no ather use for either the faolities or the equipment currently used to manufacture the timer units, should the company accept Clifton's offer? No LINK TO TEXT LINK TO VIDEO Attempts: 2 of 15 used (b1) Assume that if Sheridan water accepts Clifton's o er, he company can use the freed up manufactunng facilities to manufacture a new line of growing lights. The company estimates can sell 90,710 of the new lights each year at a price of expected to be $8 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept Clifton's offer 11. Variable costs of the lights are Total relevant cost to make Net relevant cost if they accept Cifton's offer

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