KAMI industries uses 1O units of parts A4 each month in the production of radar equipment.The cost of Manufacturing one unit of A4 is the following

Direct material..RM1OOO

Material handling[2O% of direct material cost].2OO Direct labor..8OOO Manufacturing Overhead[15O% of direct labor]12 OOO Total Manufacturing cost.RM21 2OO

Material Handling represents the direct virabale costs of the Receiving Department that are applied to direct materials and purchased components on the basis of their cost.This is a separate charge in addition to manufacturing overhead.Kami industries' anual manufacturing overhead budget is one third variable and two thirds fixed.KIA supply ,one of KAMI industries' reliable vendors,has offered to supply part number A4 at a unit unit price of RM15 OOO

Question 1A If Kami Industiries purchases the A4 units from KIA,the capacity of KAMI industries used to manufacture these parts would be idle.Should KAMI industries decide to purchasee the parts from KIA,the unit cost of A4 would increase [or decrease]by what amount

Question 1B Assume KAMI Industries is able to rent out all its idle capacity of RM 25 OOO per month.If KAMI industries decides to purchase the 1O units from KIA Supply,KAMI's monthly cost for A4 would increase [or decrease] by what amount?

Question 1C Assume that KAMI Industries dose not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute RM52 OOO per month.If KAMI's management elects to Manufacture A44 in order to maintain quality control,what is the net amount of KAMI's cost from using the space to manufacture part A4?