Coronados Shop can make 1000 units of a necessary component with the following costs: Direct Materials $20000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead ? The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?

Cannot be determined

$10000

$12000

$8000

2. Waterway Industries spent $8800 to produce Product 89, which can be sold as is for $11000, or processed further incurring additional costs of $3300 and then be sold for $15400. Which amounts are relevant to the decision about Product 89?

$11000, $3300, and $15400

$8800, $11000, and $15400

$8800, $11000, and $3300

$8800, $11000, $3300 and $15400