It costs Lannon Fields $21 of variable costs and $9 of allocated fixed costs to produce an industrial trash can that sells for $45. A buyer in Mexico offers to purchase 3,000 units at $27 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the special order offer have on net income? Decrease $9,000 Increase $9,000 Increase $81,000 Increase $18,000 Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $60,000 Direct Labor 10,000 Variable Overhead 30,000 Fixed Overhead 20,000 If Tex's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided (eliminated, reduced, goes away) what is the correct make-or-buy decision? Make and save $5,000 Buy and save $5,000 Make and save $15,000 Buy and save $15,000 Tasty Bites produces com chips. The cost of one batch is below: Direct materials $18.00 Direct labor 13.00 Variable overhead 11.00 Fixed overhead 14.00 An outside supplier has offered to produce the com chips for S25 per batch. How much will Tasty Bites save if it accepts the make or buy offer? None of the fixed overhead goes away (reduced, avoided, eliminated). $2.00 per batch $17.00 per batch $31.00 per batch $6.00 per batch Use the following to answer question 22: Truckle, Inc. currently manufactures a wicket as its main product. The costs per unit arc as follows: Direct materials and direct labor $33 Variable overhead 15 Fixed overhead 24 Total $72