ACC-650 TOPIC 5 Assignment Question 10 of 11 < > View Policies -19 E Current Attempt in Progress Ivanhoe 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 41,500 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead 5 2 10 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead Total unit cost 6 $35 Clifton Clocks has offered to provide the timer units to Ivanhoe at a price of $33 per unit. If Ivanhoe accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (a1) Calculate the total relevant cost to make or buy the timer units. (Round answers to O decimal places, e.g. 5,250.) Make $ Total relevant cost eTextbook and Media Save for Later Buy $ Assistance Used Attempts: 0 of 3 used Submit Answer (a2) Assuming that Ivanhoe 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 (b1) (b2) Assistance Used Attempts: 0 of 3 used Submit Answer