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Fothergill Company makes 9,900 units per year of a part it uses in the products it manufactures. The unit product cost of this part is

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Fothergill Company makes 9,900 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: $ $ Direct materials Direct labor costs Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Total Per Unit Cost of 6.70 3.40 7.20 2.40 2.40 1.20 23.30 $ The supervisor's salary, deprecation, and allocated overhead are all fixed costs. An outside supplier has offered to sell the company all of these parts it needs for $22.40 a unit. the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $16,600 per year. If the part were purchased from the outside supplier, all of the direct labor costs of the part would be avoided. However, $0.85 of the fixed manufacturing overhead cost being applied to the part would continue even if the part was purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. $19.70 . Of the total unit product cost above, how The supervisor's salary, deprecation, and allocated overhead are all fixed costs. An outside supplier has offered to sell the company all of these parts it needs for $22.40 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $16,600 per year. If the part were purchased from the outside supplier, all of the direct labor costs of the part would be avoided. However, $0.85 of the fixed manufacturing overhead cost being applied to the part would continue even if the part was purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. $19.70 Of the total unit product cost above, how much is relevant per unit? [ Select ] * What is the effect on net operating income (NOI) of purchasing the part rather than making it? [Select] What is the highest price per unit the company is willing to pay for the part? [Select] If the company makes 10,000 units, what is the total expected cost to manufacture them

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