Jillian, Inc. manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Jillian for $80 per unit. To evaluate this offer, Jillian, Inc. has gathered the following information relating to its own cost of producing the thermostat internally: Per Unit 15,000 Units Per Year $360,000 480,000 60,000 300,000 600,000 $24 32 4 20* 40 Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead, Tracable Allocated Fixed Manufacturing Overhead, Common Total Cost *40% supervisory salaries; 60% depreciation of special equipment (no resale value) 4. How much would it cost Jillian to manufacture the product in house? b) 68 d) $100 a) $120 c) $ 80 5. Suppose the thermostats were purchased, Jillian, Inc. could use the freed capacity to launch a new product. The segment margin of the new product would be $260,000 per year. Should Jillian, Inc. accept the offer to buy the thermostats from the outside supplier for $80 each