Barasso Manufacturing had always made its widgets in-house. However, Hanlon Plastic Moulding had recently offered to supply one widget, MX-4, at a price of $44.00 each. Barasso uses 44,000 units of widget MX-4 each year. The cost per unit of this widget is as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 28.00 $ 10.25 $ 7.50 $ 6.00 $ 51.75 The fixed overhead is an allocated expense; none of it would be eliminated if production of widget MX-4 is stopped. Question 12 (2 points) What is the total relevant cost per unit to make the widget? A What is the total relevant cost per unit to buy the widget? Question 13 (1 point) Question 12 (2 points) What is the total relevant cost per unit to make the widget? What is the total relevant cost per unit to buy the widget? Question 13 (1 point) If Barasso decides to purchase the widget from Hanlon, will operating income increase, decrease, or stay the same? stay the same decrease increase Question 14 (1 point) If Barasso decides to purchase the widget from Hanlon, operating income will change by $ A If there is no change to the operating income enter ZERO. Question 15 (1 point) Barasso should make the widget. True False Question 16 (1 point) Assume that 85 percent of Barasso Manufacturing's fixed overhead for widget MX-4 would be eliminated if that widget were no longer produced. If the company decides to purchase the widget from their supplier, will operating income increase, decrease, or stay the same assuming these conditions? 14 17 increase stay the same decrease Question 16 (1 point) Assume that 85 percent of Barasso Manufacturing's fixed overhead for widget MX-4 would be eliminated if that widget were no longer produced. If the company decides to purchase the widget from their supplier, will operating income increase, decrease, or stay the same assuming these conditions? increase stay the same decrease Question 17 (1 point) 4 Assume that 85 percent of Barasso Manufacturing's fixed overhead for widget MX-4 would be eliminated if that widget were no longer produced. If Barasso decides to purchase the widget from Hanlon, operating income will change by $ A/ . If there is no change to the operating income enter ZERO 17 Next Page Doo 2.fo