29. West Company produces a part that has the following costs per unit: Direct material $8 Direct labor 3 1 Variable overhead Fixed overhead _5 Total $17 Zest Corporation can provide the part to West for $19 per unit. West Company has determined that 60 percent of its fixed overhead would continue if it purchased the part. However, if West no longer produces the part, it can rent that portion of the plant facilities for $60,000 per year. West Company currently produces 10,000 parts per year. Which alternative is preferable and by what margin? Make-$20,000 a. b. C. d. Make-$50,000 Buy-$10,000 Buy-$40,000 30. The Ascott Company has in its inventory 3,000 damaged radios that cost $45,000. The radios can be sold in their present condition for $30,000, or repaired at a cost of $41,000 and sold for $75,000. What is the opportunity cost if The Ascott Company decides to sell the radios in their present condition? $30,000 A. B. $34,000 C. $41,000 D. E. $0 31. $75,000 Gas Country is considering selling premium gasoline. It already sells regular gasoline for $3.09/gallon and would sell premium gasoline for $3.22/gallon. The cost to further refine the regular gasoline into premium gasoline would be $.12/gallon. A cost that should NOT be considered in this decision would be: A. the revenue generated by selling premium gasoline. B. the cost of refining regular gasoline. C. the cost of further processing regular gasoline into premium gasoline. D. the revenue generated by selling regular gasoline. 32. Fixed costs that may be avoided in the future are referred to as: replacement costs. A. B. opportunity costs. C. relevant costs. D. sunk costs.