Cullumber Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 52,000timers, the company has calculated the following unit costs. Direct xed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 4 Direct xed manufacturing overhead 10 (30% salaries, 70% depreciation) Allocated xed manufacturing overhead 8 Total unit cost J Clifton Clocks has offered to provide the timer units to Cullumber at a price of $36 per unit. If Cullumber accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (a1) Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decimal places, e.g. 5,250.) Make Buy $ $ Total relevant cost eTextbook and Media Save for Later Attempts: 0 of 3 used (a2) Assuming that Cullumber Water has no other use for either the facilities or the equipment currently used to manufacture the timer units, should the company accept Clifton's offer? 4' (b1) Assume that if Cullumber Water accepts Clifton's offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 99,360 of the new lights each year at a price of $12. Variable costs of the lights are expected to be $9 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept Clifton's offer. Total relevant cost to make $ Net relevant cost if they accept Clifton's offer $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer ('02) Should Cullumber Water accept Clifton's offer? : Clifton's offer