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48. Galley Industries can produce 500 units of a necessary component part with the following costs: Direct Materials $75,000 Direct Labour 20,000 Variable Overhead 60,000 Fixed Overhead 10,000 If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided. Below what external price for the 500 units would Galley choose to buy instead of make? a) $95,000 b) $165,000 c) $155,000 d) $158,000 50. In which situations should opportunity costs be considered? O a) decision making that involves alternative uses b) forecasting sales c) financial accounting d) break-even analysis 51. Wishnell Toys can make 5,000 toy robots with the following costs: Direct Materials $74,000 Direct Labour 30,000 Variable Overhead 23,000 Fixed Overhead 15,000 The company can purchase the 5,000 robots externally for $145,000. The avoidable fixed costs are $15,000 if the units are purchased externally. What is the cost savings if the company makes the robots? a) $18,000 b) $15,000 c) $5,000 d) $3,000 52. Hermantic, Inc. can produce 100 units of a component part with the following costs: Direct Materials $30,000 Direct Labour 13,000 Variable Overhead 32,000 Fixed Overhead 22,000 If Hermantic, Inc. purchases the units externally for $80,000, by what amount will its total costs change? Fixed costs are not avoidable if they purchase externally, a) an increase of $80,000 b) an increase of $5,000 c) an increase of $17,000 d) a decrease of $22,000