Question 8 (2 points) E. Bunny owns a factory that produces 15,000 individual egg dyes per season that are used for the production of egg decorating kits. E. Bunny was recently approached by an outside supplier (R. Rabbit) that offered to produce the dyes at $15 per unit. Purchasing from R. Rabbit will give E. Bunny unused space, which can be rented out for $130,000. E. Bunny has provided the following information about the costs associated with producing their egg dyes: Per unit costs Costs at production of 15,000 dyes Direct materials $2. $30,000 Direct labour $3 $45,000 Variable manufacturing $1 $15,000 overhead Allocated common Fixed $4 $60,000 manufacturing overhead Total $10 $150,000 Should E. Bunny purchase their dye from the outside supplier R. Rabbit? No, profits would decrease by $95,000 if the outside supplier's offer is accepted No, profits would decrease by $5,000 if the outside supplier's offer is accepted by an outside supplier (R. Rabbit) that offered to produce the dyes at $15 per unit. Purchasing from R. Rabbit will give E. Bunny unused space, which can be rented out for $130,000. E. Bunny has provided the following information about the costs associated with producing their egg dyes: $2 Per unit costs Costs at production of 15,000 dyes Direct materials $30,000 Direct labour $3 $45,000 Variable manufacturing $1 $15,000 overhead Allocated common Fixed $60,000 manufacturing overhead Total $10 $150,000 Should E. Bunny purchase their dye from the outside supplier R. Rabbit? $4 No, profits would decrease by $95,000 if the outside supplier's offer is accepted No, profits would decrease by $5,000 if the outside supplier's offer is accepted Yes, profits would increase by $95,000 if the outside supplier's offer is accepted Yes, profits would increase by $5,000 if the outside supplier's offer is accepted