Appliances Company uses a timer part in the manufacture of several of its air conditioners. The cost of producing 40,000 units of timer is $110,000, which includes fixed costs of $50,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 40% of the fixed costs. The unavoidable s factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. 7. If Appliances buys the part the outside supplier, how will its operating income be affected? a. $120,000 less than if the company made the part b.$120,000 greater than if the company made the part c. $68,000 greater than if the company made the part d.$68,000 less than if the company made the part e.$178,000 greater than if the company made the part f. $92,000 greater than if the company made the part 8. Calculate the maximum price that Appliances should pay per unit to an outsider supplier