Hi, I need help with section (b1). I included the answers for the first sections but got both of b1 answers wrong.
Thank you for the help.
Cul lumber 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 41,000 timers. the company has calculated the fol lowing unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 3 Direct xed manufacturing overhead 8 (30% salaries, 70% depreciatio n} Allocated xed manufacturing overhead 5 Total unit cost E Clifton Clocks has offered to provide the timer units to Cullumber at a price of $35 per unit. If Cullumber accepts the offer. the current timer unit supervisory and clerical staff will be laid off. (all \\' Your answer is correct. Calculate the total relevant cost to make or buy the timer units. {Round answers to 0 decimal places, 9.3. 5.250.] Make Buy Total relevant cost $ 1'000'400 $ 1'435'000 eTextbook and Media Attempts: 1 of 3 used V Your answer is correct. Assuming that Cu l lumber 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? No" eTextbook and Media Attempts: 1 of 3 used \"31) X Your answer is incorrect. Assume that if Cullumber Water accepts lL'Jifton'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 94.270 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 he transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept lClifton's offer. Total relevant cost to make $ Net relevant cost if they accept Clifton's offer $ eTextbook and Media smm fnrl :fnr Attempts: 1 of 3 used W