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Huimin Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 36,000 timer units annually. The cost per unit for the timer is as follows:

Description	Cost
Direct materials	9.60
Direct labour	3.20
Variable overhead	2.40
Fixed overhead	5.60
Total cost	20.80

Of the total fixed overhead assigned to the timers, $72,000 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead.

An outside supplier has offered to sell the timers to Huimin Inc. for $17.40 per unit.

Use the above information to answer all of the following questions.

Question 36 (1 point)

If there was no other alternative use for the facilities that is currently used to produce the timers, should Huimin Inc. make or buy the timers?

Question 36 options:

a)

Make

b)	Indifferent

c)

Buy

Question 37 (3 points)

Question 37 options:

What is the most that Huimin Inc. would be willing to pay an outside supplier for one unit of the timer?

Question 38 (1 point)

If Huimin Inc. buys the timers, would their operating income increase, decrease, or stay the same?

Question 38 options:

a)

Decrease

b)

Increase

c)	Stay the same

Question 39 (2 points)

Question 39 options:

If Huimin Inc. buys the timer, by how much would their operating income change?

Input your answer as a positive number.

Question 40 (1 point)

If Huimin Inc. could rent out the space that is currently used to produce the timers for $28,000 per year, should the company make or buy the timers?

Question 40 options:

a)	Indifferent

b)

Buy

c)

Make

Question 41 (2 points)

Question 41 options:

If Huimin Inc. buys the part and then rents out the space that is currently used to produce the timers for $28,000 per year, by how much would their operating income change?

Input your answer as a positive number.