Barrus Corporation makes 60,000 motors to be used in the production of its power lawn mowers. The cost per motor at this level of activity is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $20.50 15.60 9.25 7.35 An outside supplier has offered to sell motors to Barrus for $48 per motor. If Barrus stops making the motors, none of the fixed manufacturing overhead would be avoidable and there would be no other use for the facilities. If Barrus purchases the motors from the supplier, by how much will net income change? $441,000 increase. $159,000 decrease. O$714,000 decrease. $282,000 increase Wiacek Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 90,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and admin expenses Fixed selling and admin expenses $3.10 2.70 1.10 1.80 2.00 1.50 The normal selling price is $20 per unit. Wiacek's capacity is 100,000 units per year. Wiacek has received a request for a special order of 5,000 units for $14 each. The special order would have no effect on Wiacek's other sales. The customer would like modifications to the product that would increase direct material costs by $1.00 per unit. The order will not change Wiacek's total fixed costs. If the order is accepted, by how much will annual profits increase? $21,500. $9,000 $20,500 $4,000