Question 8 1 pts Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 50,000 Included in the $50,000 of fixed overhead is $3,000 spent to rent production equipment that could be avoided if Harvey did not manufacture this part. If Harvey buys the part from an outside supplier, it could use factory resources to make another product which is estimated to have a contribution margin of $12,000 An outside supplier offers to make 5,000 units for $15 per unit. What should Harvey do to maximize net income? Buy, net income will be $30,000 greater. Make, net income will be $5,000 greater. Buy, net income will be $15,000 greater. Make, net income will be $20,000 greater. Question 9 1 pts Sharpe Company has 3 Manufacturing divisions. It allocates corporate fixed costs based on the number of units sold by each division. Last year the Basic Division reported the following. Basic Division Sales revenue $100,000 73,000 Variable costs Direct fixed costs 28,000 Allocated fixed costs 9,000 Net income (loss) ($10,000) If Sharpe eliminates (discontinues) the Basic Division: Sharpe's net income will increase $8,000. Sharpe's net income will decrease $18,000. Sharpe's net income will increase $10,000. Sharpe's net income will increase $1,000. Question 10 1 pts A pharmaceutical company that sells patented drugs would most likely use which of the following? O Cost-plus pricing. O Time-and material pricing. O Contribution margin costing. O Target costing