Key Zone produces special of pumps. They currently manufacture a specific flow valve for their pumps. They produce 12,000 of these valves a year, and the following represents the per unit cost information Drect Matorial per unit Direct Labor per unit Variable Overhead per unit Fed Overhead per unit Total Cost per unit 54 $5.50 $2.25 $3 $14.75 Total foxed overhead costs equal $30,000 An outsider supplier has offered to sell the valve to Key Zone for $13 per und if Key Zone purchases the valves only 50% of the fixed overhead can be eliminated By how much will income increase or decrease if Key Zone purchases the valves from the outside supple O Decrease $15,000 O Increase $21,000 O Increase $3,000 O Decrease $3,000 Key Zone produces special of pumps. They currently manufacture a specific flow valve for their pumps. They produce 12,000 of these valves a year, and the following represents the per unit cost information Direct Material per und Direct Labor per unit Vanable Overhead per unit sued Overhead per unit Total Cost per unt 54 $5.50 $225 53 $14 75 Total fixed overhead costs equal $36,000 An outsider supplier has offered to sell the valve to Koy Zone for $13 per unit. If Key Zone purchases the valves only 50% of the faed overhead can be eliminated By how much will income increase or decrease if Key Zone purchases the valves from the outside supplier? O Decrease $15,000 Increase $21,000 O Increase $3,000 O Decrease $3,000 QUESTION 16 Republic industries deodes to price delivery service according to the results of a recent actely based coshing (ABC) shady The tour AC activity rates are as follows 50 per order, 2% of the onder's value for general delivery costs, $125 per dem, and $30 for delivery A year later, Republic collected the folowing informabon for two of is best customers Cost driver Number of onders Number of deliveres Customer C 10 10 Customer D 10 Number of em 2,000 4.000