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Question 20 1 pt Fabiano Caruana Inc. manufactures 40,000 crafts annually at a cost of $42 per unit, which includes $12 of fixed overhead. Lireng

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Question 20 1 pt Fabiano Caruana Inc. manufactures 40,000 crafts annually at a cost of $42 per unit, which includes $12 of fixed overhead. Lireng Company has offered to sell these units to Fabiano Caruana Inc. at $35 per unit. If Fabiano Caruana Inc. decides to purchase the crafts, $80,000 of the annual fixed overhead cost will be eliminated, and the company may be able to rent the facility previously used for manufacturing the ornaments If the crafts are purchased and the facility rented, Fabiano Caruana Inc. wishes to realize $160,000 in net savings annually. To achieve this goal, the minimum annual rent on the facility must be: $190.000 $40,000 $360,000 $280.000

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