Question 2: (5 marks) Kid Co. manufactures a part for use in its production of toys. When 10,000 items are produced, the costs per unit are: I Direct materials Direct labor Variable production overhead Fixed production overhead Total $0.60 3.00 1.20 1.60 $6.40 Toy Toy Co. has offered to sell to Kid Co. 10,000 units of the part for $6.00 per unit. The idle factory facilities could be sublet and earn rental income of $9,000 if Kid Co. accepts the offer. In addition, $1.00 per unit of fixed production overhead on the original item would be eliminated. Required: Which alternative is best for Kid Co.? By how much