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Royal Company manufactures 20,000 units of part R-3 each year for use on its production line. At this level of activity, the cost per unit

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Royal Company manufactures 20,000 units of part R-3 each year for use on its production line. At this level of activity, the cost per unit for part R-3 is: An outside supplier has offered to sell 20,000 units of part R-3 each year to Royal Company for $23.50 per part. If Royal Company accepts this offer, the facilities now being used to manufacture part R-3 could be rented to another company at an annual rental of $150,000. However, Royal Company has determined that $6 of the fixed manufacturing overhead being applied to part R-3 would continue even if part R-3 were purchased from the outside supplier. a. What is the total relevant cost of making the product? (Omit the "$" sign in your response.) Total relevant cost of making the product (20,000 units) $ b. What is the total relevant cost of buying the product? (Omit the "$" sign in your response.) Total relevant cost of buying the product (20,000 units) $ 470000 c. What is the opportunity cost of making instead of buying? (Omit the "$" sign in your response.) Total opportunity cost $ 150000 d. How much profits will increase or decrease if the outside supplier's offer is accepted? (Input the amount as a positive value. Omit the "$" sign in your response.) Profits would increase by $

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