- Do NOT round calculations, ONLY round final answer for each individual required in a problem

- Use rounded answers for subsequent questions for same problem

- Dollar amount - round to nearest penny

- % to two decimal places

- round units to the next unit

Zoolander Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 38,000 timer units annually. The cost per unit for the timer is as follows: Description Cost Direct materials 5.40 Direct labour 1.80 Variable overhead 1.35 Fixed overhead 3.15 Total cost 11.70 Of the total fixed overhead assigned to the timers, $26,600 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead. An outside supplier has offered to sell the timers to Zoolander Inc. for $9.50 per unit. Use the above information to answer all of the following questions. Question 27 (1 point) If there was no other alternative use for the facilities that is currently used to produce the timers, should Zoolander Inc. make or buy the timers? a) Buy Ob) Make c) Indifferent Question 28 (3 points) What is the most that Zoolander Inc. would be willing to pay an outside supplier for one unit of the timer? Question 29 (1 point) If Zoolander Inc. buys the timers, would their operating income increase, decrease, or stay the same? Question 29 (1 point) If Zoolander Inc. buys the timers, would their operating income increase, decrease, or stay the same? a) Increase b) Decrease c) Stay the same Question 30 (2 points) If Zoolander Inc. buys the timer, by how much would their operating income change? Input your answer as a positive number. A Question 31 (1 point) If Zoolander Inc. could rent out the space that is currently used to produce the Question 31 (1 point) If Zoolander Inc. could rent out the space that is currently used to produce the timers for $16,000 per year, should the company make or buy the timers? a) Buy Ob) Indifferent c) Make Question 32 (2 points) If Zoolander Inc. buys the part and then rents out the space that is currently used to produce the timers for $16,000 per year, by how much would their operating income change? Input your answer as a positive number