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Hello! please answer all parts to the question clearly please its sometimes hard to understand the experts please thank you! provide the answer TO EACH

Hello! please answer all parts to the question clearly please its sometimes hard to understand the experts please thank you!

provide the answer TO EACH QUESTION CLEARLY please!!!

PLEASE CLEARLY LABLE THE ANSWER & SHOW ALL WORK.

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Kumara Company manufactures designer clothes for women. Each dress requires five special buttons, which the company has historically produced. The costs of producing one button in- house (based on a maximum capacity of 5,000,000 units per year) are: Direct material $0.05 Direct Labor $0.06 Variable factory overhead $0.08 Fixed factory overhead S0.07 Total Cost $0.26 Fixed factory overhead includes $210,000 of depreciation on equipment for which there is no alternative use and no market value. The balance of the fixed factory overhead pertains to the salary of production supervisor, Jim Norton. Jim has a lifetime employment contract and the skills that could be used in another department to replace Ted Ashton. Ted draws a salary of $90,000 per year but is due to retire from the company. Anthony Co. recently approached Kumara Co with an offer to supply all required buttons for $0.19 per unit. Anticipated sales demand for the coming year will require 5,000,000 buttons. If outsourced, Kumara Co will incur an additional $25,000 to transport the buttons to its ware- house. What will be the net effect on corporate profit if Kumara Co. decides to outsource the but- tons to Anthony Co

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