#6: Make or Buy (7 points) Madison Co. has an offer to purchase a part used in its manufacturing operations for $49 unit. They need 22,000 units. The unit cost for Frank Co. to make the part is $60, which includes $6 of fixed costs. If Madison Co. purchases the part, they can save $4 per unit in fixed costs. Should Madison Co. buy the part? What is the incremental net income or net loss if Madison Co. chooses to buy the component from the outside supplier? #7: Accept or Reject (Special Order) (7 points) Unit product costs for Kiwi Company are as follows: Direct Materials Direct Labor Manufacturing Overhead (2/3) fixed Variable Selling Total Unit Product Cost $30 $36 $36 $18 $120 Kiwi Company normally sells the product for $150 a unit. Kiwi Company is considering a special order. A buyer has offered buy 1,200 units and pay $130 per unit. Fixed costs would not change because of this special order. However, if the order is accepted, Kiwi Company would have to pay an additional $13 for packaging and shipping. In the order, the only variable selling costs that would be incurred would be $12 per unit. Should Kiwi accept the order? What is the incremental net income or net loss if Kiwi Company chooses to accept the special order