An appliance company currently buys microwave fans for its microwaves from an outside supplier at a cost of $60 per fan. It is considering making the microwave fans in its manufacturing facility based on the following unit product costs: Direct materials $30 Direct labour 13 Variable overhead Depreciation of equipment Supervisor's salary General factory overhead Unit product cost $58 2 5 3 5 The equipment necessary to make the microwave fans was purchased 5 years ago. General factory overhead would be allocated to this product; however, the company's general factory overhead would not change if they decided to make the microwave fans. Contribution margin of $5 per unit would be lost if the company occupies the manufacturing space that is currently being used to manufacture and sell another product Identify if each product cost is relevant or not. (6 marks) Amount Relevant cost? Direct materials $30 Direct labour 13 , Variable overhead 2 Depreciation of equipment Supervisor's salary General factory overhead 5 Unit product cost $58 5 3 What is the total incremental unit cost to make a microwave fan in the company's manufacturing facility? (1 mark) What is the total opportunity cost per unit if the company makes microwave fans in its manufacturing facility? (1 mark) Should the company continue to buy microwave fans from an outside supplier, or should it start to make them in its manufacturing facility? (1 mark) The company should continue to buy its microwave fans from the outside supplier The company should manufacture its own microwave fans