2. The Houston Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows: 5 Click to see the manufacturing cost per unit.) For Houston to achieve an overall savings of $35,000, 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) $100,000, (b) $255,000, (c) $35,000 or (d) $320,000? Show your calculations. What other factors might Houston 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 Data table Total relevant costs of making: (per unit) 0 Direct materials $ 9 25 Costs saved by not making Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead allocated 16 x units in the offer 2 $ 71 Total manufacturing cost per unit Total costs saved Extra costs of purchasing outside Minimum savings required Necessary relevant costs to be saved For Houston to achieve an overall savings of $35,000, 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: The Acre Company has offered to sell 20,000 units of Part No. 498 to Houston for $66 per unit. Houston will make the decision to buy the part from Acre if there is an overall savings of at least $35,000 for Houston. If Houston accepts Acre's offer, $5 per unit of the fixed overhead allocated would be eliminated. Furthermore, Houston has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. O A. $35,000 O B. $320,000 O C. $100,000 Print Done OD. $255,000 What other factors might Houston consider before outsourcing to Acre? V Houston would want to be sure about Houston would also want Acre to Before outsourcing to Acre, Houston might consider achieve all these goals, Houston may want to