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: $0.30 0.20 0.15 0.401 Direct materials Direct labour Variable overhead Fixed overhead" * Fixed overhead is $2,400 per year in equipment costs specifically traceable to the plastic housing fine and $1.600 per year in general overhead costs to be allocated to this line. Required: if Waterloo makes the housing in-house, will net 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 (80% variable) 30 Administrative expenses (20% variable) 15 Total per unit $259 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? MacBook Air So 888 F DIM 3 * $ 4 A % 5 6 & 7 00 * 8 9 E R T Y U D F C