6 ACC-GSO TOPIC 5 Assignment Question 10 of1'l _/9 E View Policies Current Attempt in Progress Oriole Water Co' is a leading producer of greenhouse irrigation systems' Currently, the company manufactures the timer unit used in each of its systems Based on an annual production of 42,000 timers, the company has calculated the following unit costs' Direct xed costs include supervisory and clerical salaries and equipment depreciation Direct materials $12 Direct labor 6 Variable manufacturing overhead 3 Direct xed manufacturing overhead 10 (30% salaries, 70% depreciation) Allocated xed manufacturing overhead 5 Total unit cost E Clifton Clocks has offered to provide the timer units to Oriole at a price of $35 per unit' If Oriole accepts the offer, the current timer unit supervisory and clerical staff will be laid oft (a1) Calculate the total relevant cost to make or buy the timer units. (Round answers toOdecimal places, 2.3. 5,250.) Make Buy $ $ Total relevant cost eTextbook and Media Save for Later Attempts: 0 of 3 used (22) Assuming that Oriole Water has no other use for either the facilities or the equipment currently used to manufacture the timer units, should the company accept Clifton's offer? eTextbook and Media Save for Later Attempts: 0 of 3 used (b1) Assume that if Oriole Water accepts Clifton's offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 89,780 of the new lights each year at a price of $11, Variable costs of the lights are expected to be $8 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept Clifton's offer. Total relevant cost to make Net relevant cost if they accept Clifton's offer eTextbook and Media Save for Later Attempts: 0 of 3 used (b2) Should Oriole Water accept Clifton's offer? v Clifton's offer, eTextbook and Media Save for Later Attempts: 0 of 3 used