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Huang Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 42,000 timer units annually. The cost per unit for the timer is as follows:

Description	Cost
Direct materials	4.80
Direct labour	1.60
Variable overhead	1.20
Fixed overhead	2.80
Total cost	10.40

Of the total fixed overhead assigned to the timers, $25,200 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead.

An outside supplier has offered to sell the timers to Huang Inc. for $8.45 per unit.

Use the above information to answer all of the following questions.

Question 21 (1 point)

If there was no other alternative use for the facilities that is currently used to produce the timers, should Huang Inc. make or buy the timers?

Question 21 options:

a)

Make

b)	Indifferent

c)

Buy

Question 22 (3 points)

Question 22 options:

What is the most that Huang Inc. would be willing to pay an outside supplier for one unit of the timer?

Question 23 (1 point)

If Huang Inc. buys the timers, would their operating income increase, decrease, or stay the same?

Question 23 options:

a)	Stay the same

b)

Decrease

c)

Increase

Question 24 (2 points)

Question 24 options:

If Huang Inc. buys the timer, by how much would their operating income change?

Input your answer as a positive number.

Question 25 (1 point)

If Huang Inc. could rent out the space that is currently used to produce the timers for $19,000 per year, should the company make or buy the timers?

Question 25 options:

a)	Indifferent

b)

Buy

c)

Make

Question 26 (2 points)

Question 26 options:

If Huang Inc. buys the part and then rents out the space that is currently used to produce the timers for $19,000 per year, by how much would their operating income change?

Input your answer as a positive number.