Chenango Industries uses $10$ units of part JR$63$ each month in the production of radar equipment. The cost of manufacturing one unit

of JR$63$ is the following:

Material handling represents the direct variable costs of the Receiving Department that are applied to direct materials and purchased

components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual

manufacturing overhead budget is one$-$third variable and two$-$thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors,

has offered to supply part number JR$63$ at a unit price of $$62,000.$

Required:

If Chenango Industries purchases the JR$63$ units from Scott, the capacity Chenango Industries used to manufacture these parts

would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR$63$ would increase $($or

decrease$)$ by what amount?

Assume Chenango Industries is able to rent out all its idle capacity for $$92,000$ per month. If Chenango Industries decides to

purchase the $10$ units from Scott Supply, Chenango's monthly cost for JR$63$ would increase $($or decrease$)$ by what amount?

Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture

another product that would contribute $$176,000$ per month. If Chenango's management elects to manufacture JR$63$ in order to

maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR$63?$