please help solve these 2 questions asap
QUESTION 10 Donner Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 26,000 parts is $95,000, which includes feed costs of $40,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $3 per unit and avoid 20% of the fored conts. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $17.000. If Donner outsources, what will be the effect on operating income? decrease of S2000 increase of S2000 decrease of $8000 increase of $17.000 QUESTION 11 Bitron Company manufactures a component used in the production of one of its main products. The following cost information is available: Direct materials $470 Direct labor (variable) 110 Variable manufacturing overhead 90 Fixed manufacturing overhead 35 A supplier has offered to sell the component to Blitzen for $840 per unit of Blitzon buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10.000 annually. Assuming that Blitzen needs 3000 components annually and that the foxed manutacturing overhead is unavoidable, what would be the impact on operating income il Blitzen outsources? Operating income would increase by $90,000. o Operating income would increase by $10,000, Operating income would decrease by $80,000 o Operating income would decrease by $10,000 QUESTION 10 Donner Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 26,000 parts is $95,000, which includes feed costs of $40,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $3 per unit and avoid 20% of the fored conts. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $17.000. If Donner outsources, what will be the effect on operating income? decrease of S2000 increase of S2000 decrease of $8000 increase of $17.000 QUESTION 11 Bitron Company manufactures a component used in the production of one of its main products. The following cost information is available: Direct materials $470 Direct labor (variable) 110 Variable manufacturing overhead 90 Fixed manufacturing overhead 35 A supplier has offered to sell the component to Blitzen for $840 per unit of Blitzon buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10.000 annually. Assuming that Blitzen needs 3000 components annually and that the foxed manutacturing overhead is unavoidable, what would be the impact on operating income il Blitzen outsources? Operating income would increase by $90,000. o Operating income would increase by $10,000, Operating income would decrease by $80,000 o Operating income would decrease by $10,000