PLEASE HELP!! WILL GIVE THUMBS UP!!

Sheffield Corp. produces 5000 units of part A12E. The following costs were incurred for that level of production:

Direct materials	$ 60000
Direct labor	165000
Variable overhead	80000
Fixed overhead	175000

If Sheffield buys the part from an outside supplier, $70000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E?

$96

$75

$82

$61

Concord Corporation produces 5000 units of part A12E. The following costs were incurred for that level of production:

Direct materials	$ 50000
Direct labor	155000
Variable overhead	70000
Fixed overhead	175000

If Concord buys the part from an outside supplier, $35000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $65, net income will increase (decrease) by

$(50000).

$(15000).

$115000.

$85000.