Apex's Budgeted Cost for Production of 5,000 Air Conditioners Unit-Level Costs: Material ($80/unit) Labor (S22/hr 2 hours/unit) Overhead (S8/unit) 400,000 220,000 40,000 660,000 60,000 Batch-level Costs (25 batches) Product-level Costs 89,000 Facility Level Costs 180,000 Total Expected costs 989,000 Cost per unit = $197.80 Apex received an order for 400 units from a new customer in a country in which Apex has never done business. This customer would like to spend $160 per air conditioner. Apex has capacity to produce 5,500 units. Apex is evaluating an opportunity to rent the space it has for its excess capacity for $5,000. Should it accept the special order? A) No, there are risks in accepting the order related to waste and warranty; Apex is better off taking the rental income. B) No, the opportunity cost of not accepting the rental income is greater than the revenue from the special order. C) Yes, the contribution to income from the special order is larger than the opportunity cost from renting the space. D) Yes, the opportunity cost related to the rent is not relevant to this decision. Apex received an offer from another company to manufacture the same quality air conditioners for $165. Apex realized it could rent their manufacturing space for $50,000. Should Apex outsource the manufacture of the air conditioners? A) No, Apex should control the manufacturing process. B) No, Apex can expect profitability to decline if they outsource production. C) Yes, Apex can expect profitability to increase $34,000 if they outsource production. D) Yes, Apex can expect profitability to increase $50,000 if they outsource production