A) Waterloo Company makes portable charges for cell phones. Currently, Waterloo purchases 10,000 plastic housings a year from an outside company for $1 each. One of Waterloo engineers suggested that the company make its plastic housings in-house Estimated unit costs are as follows: 0.20 0.15 Direct materials $0.30 Direct labour Variable overhead Fixed overhead 0.40 Fixed overhead is $2,400 per year in equipment costs specifically traceable to the plastic housing line and $1,600 per year in general overhead costs to be allocated to this line. Required: ir Waterloo makes the housing in-house, will not income be higher or lower, and by how much? Show All your calculations. Should they make the housing in-house? B) Oshawa Corporation manufactures a single product with the following unit costs for 10,000 units: Direct materials $ 75 Direct labour 40 Manufacturing overhead (40% variable) 90 Selling expenses (60% variable) 30 Administrative expenses (20% variable) 151 Total per unit $250 Recently, a company approached Oshawa Corporation about buying 2,000 units for $250. Currently, the models are sold to dealers for $450. Oshawa's capacity is sufficient to produce the extra 3,000 units. Selling expenses would be incurred as normal on the special order. Required: Should Oshawa accept the special order if its goal is to maximize short-run profits? How much will income be affected