Name: Class: Date ACC350, Cost Management, Fall 2019 - Final-a 10. Wood used in production process 7. Salley Company makes pagers. Currently, Salley purchases 10.000 plastic housings per year from an outside company for $1 each. One of Salley's engineers suggested that the company make its plastic housings in-house. Estimated unit costs are as follows: Direct materials $0.30 Direct labor 0.20 Variable overhead 0.15 Fixed overhead* 0.40 * Fixed overhead is $2,400 per year in equipment costs specifically traceable to the plastic housing line and $1,600 per year in general overhead costs to be allocated to this line If Salley makes the housing in-house, net income will be $ Higher A. or Lower? What is the highest price per unit that Salley would pay an outside company for the B. housings? Now assume that all of the fixed overhead is allocated fixed overhead and will not be affected by making the product in-house or purchasing it. If Salley makes the housing in- house, net income will be $_ _(Higher / Lower). Campanile necountant nrenared the following income statement for the month of August. Name: Class: Date ACC350, Cost Management, Fall 2019 - Final-a 10. Wood used in production process 7. Salley Company makes pagers. Currently, Salley purchases 10.000 plastic housings per year from an outside company for $1 each. One of Salley's engineers suggested that the company make its plastic housings in-house. Estimated unit costs are as follows: Direct materials $0.30 Direct labor 0.20 Variable overhead 0.15 Fixed overhead* 0.40 * Fixed overhead is $2,400 per year in equipment costs specifically traceable to the plastic housing line and $1,600 per year in general overhead costs to be allocated to this line If Salley makes the housing in-house, net income will be $ Higher A. or Lower? What is the highest price per unit that Salley would pay an outside company for the B. housings? Now assume that all of the fixed overhead is allocated fixed overhead and will not be affected by making the product in-house or purchasing it. If Salley makes the housing in- house, net income will be $_ _(Higher / Lower). Campanile necountant nrenared the following income statement for the month of August