answer!!

answer!!

Waiton Corporation, which makes and sells 80,300 radios annually, currently purchases the radio speakers it uses for $24 each. Each radio uses one speaker. The company has idle capacity and is considering the possibility of making the speakers that it needs. Waiton estimates that the cost of materials and labor needed to make speakers would be a total of $22 for each speakec in addition. supervisory salaries, rent, and other manufacturing costs would be $175,000. Allocated facility-level costs would be $99,200. Required a. Determine the change in net income Walton would experience if it decides to make the speakers. Norman Dowd owns his own taxi, for which he bought a $11,300 permit to operate two years ago. Mc. Dowd earns $33,900 a year operating as an independent but has the opportunity to sell the taxi and permit for $43,000 and take a position as dispatcher for Carter Taxi Company The dispatcher position pays $34,000 a year for a 40 -hour week. Driving his own taxi, Mr. Dowd works approximately 55 hours per week. If he sells his business, he will invest the $43,000 and can earn a 9 percent return. Required a. Determine the opportunity cost of owning and operating the independent business. b. Calculate the earnings of Norman Dowd operating as an independent and the earnings of Norman Dowd working as a dispatcher Based solely on financial considerations, should Mr. Dowd sell the taxi and accept the position as dispatcher