$360 O $300 QUESTION 6 Hojnik Inc produces part ABC used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $42,000 Direct labour 10,500 Variable overhead costs 32,500 Fixed overhead costs 18,000 Total costs $103,000 It is estimated that 6% of the fixed overhead costs assigned to ABC will no longer be incurred if the company purchases ABC from the outside supplier. Hojnik Inc. has the option of purchasing the part from an outside supplier at $94.75 per unit. If Hojnik Inc. purchases 1,000 ABC parts from the outside supplier per month, then its monthly operating income will (Round any intermediary calculations and your final answer to the nearest cent.) increase by $21,330 increase by $8,670 decrease by $21,330 decrease by $8,670 QUESTION 7 Please use this space to specify any assumptions you have made in completing the exam and which questions those assumptions relate to. You may also include queries you may have made with respect to a particular questic been able to 'raise your hand' in an examination room. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph Open Sans,s... 10pt :v Ix % GQ > x X V Save All