15. Dipuisto Inc, manufactures radios at an annual production level of 50,000 units. At this production level, the cost per unit for a radio is as follows: Direct materials $2.10 Direct labor $3.70 Variable manufacturing overhead $8.40 Supervisor's salary $6.65 Fixed manufacturing overhead $9.15 Total cost: $30.00 An outside supplier has offered to sell the radios to Dipuisto Inc. for $26.20 per unit. If Dipuisto Inc. accepts this offer, then they will not need to employ the supervisor. Also, if the radios are purchased from the outside supplier, then 40% of the fixed manufacturing overhead costs can be eliminated. Assuming that there are no other uses for the facility space that Dipuisto uses to manufacture the radios, what is the annual impact to the company's profit if it buys the radios from the supplier instead of manufacturing them? a. Profit would decrease by $84,500 b. Profit would increase by $84,500 c. Profit would decrease by $190,000 d. Profit would increase by $190,000 16. Mariess Corp. manufactures shirts, and it is considering whether or not it should accept a special order for 5.000 shirts. The normal selling price of a shirt is $45 and its unit product cost is $36 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $8.00 $16.00 $12.00 $36.00 Most of the manufacturing overhead is fixed; however, 30% of it is variable with respect to the number of shirts produced. The special order will require customizing the shirts for the customer with an additional direct materials cost of 55 per shirt and an additional direct labor cost of $4 per shirt. If it accepts this order. Mariess will have to rent special equipment to handle the shirt customization at a cost of $22,000. The order would have no effect on Marjess Corporation's regular sales and it could be fulfilled using the company's existing capacity without affecting any other order What is the minimum (.e., the break-even) sales price per unit that Marjess should charge for this special order? a $17.00 b. $49.40 c. $32.00 d. $41.00