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19. Each year, FosterCo produces 35000 units of a component to use in transcontinental blimps. An outside supplier has offered to supply the part for $4.31 l'he unit cost is: Direct Materials: Direct Labor: Variable MOH: Fixed MOH: $ 1.55 $0.95 $1.45 $0.73 Fixed MOH is applied on the basis of machine hours. The component requires 10,000 machine hours per year. All of the Fixed MOH is unavoidable costs associated with the factory and equipment except $100 p. 11912007 of fixed overhead is a lease of equipment used in production of the blimp and can be avoided if the component is purchased from the outside supplier, which alternative (make the part internally or purchase from the outside supplier) is more cost effective and what is the difference in relevant costs between options? 20. Foster Paper Products, Inc., manufactures boxed stationary for sale to specialty shops. Currently, the company is operating at 90% of capacity. A chain of drugstores has offered to buy 22000 boxes of Foster's thank-you notes as long as the box can be customized with the drugstore chain's logo. Whi 1101 selling price is $6 per box, the chain has offered jus $3.0 ber box. Foster can accommodate the special order without affecting current sales. Unit cost information for a box or wank-you notes follows: Direct materials: Direct labor: Variable overhead: Fixed overhead: Total cost per box $1.98 $0.45 $0.18 $2.45 $5.06 Fixed overhead if $420000 per year and will not be affected by the special order. Normally, there is a commission of 5% percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $8600 for the design and setup of the machinery to stamp the drugstore chain's logo on each box. What is the effect on operating income for the company as a whole if Foster chooses to accept the special order