2. The Chicago Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) For Chicago to achieve an overall savings of $15,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $50,000, (b) $75,000, (c) $45,000 or (d) $110,000? Show your calculations. What other factors might Chicago consider before outsourcing to Acre? Begin by selecting the labels to calculate the relevant costs that would have to be saved and then enter in the supporting calculations. Cost to purchase Total relevant costs of making: (per unit) Costs saved by not making x units in special order Total costs saved Extra costs of purchasing outside Minimum savings required Necessary relevant costs to be saved Choose from any list or enter any number in the input fields and then click Check Answer. i Data Table ctid No. 575 would be Jai ht ve 10 19 Direct materials $ 11 Variable direct manufacturing labor 35 Variable manufacturing overhead Fixed manufacturing overhead allocated Total manufacturing cost per unit $ 75 The Acre Company has offered to sell 10,000 units of Part No. 498 to Chicago for $70 per unit. Chicago will make the decision to buy the part from Acre if there is an overall savings of at least $15,000 for Chicago. If Chicago accepts Acre's offer, $8 per unit of the fixed overhead allocated would be eliminated. Furthermore, Chicago has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. Print Done