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Solve the question showing all formulas and calculations please thanks in advance Queation 1 (10 Marks) Home Cont production line. At this level of activity,

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Solve the question showing all formulas and calculations please thanks in advance
Queation 1 (10 Marks) Home Cont production line. At this level of activity, the cost per unit for Part A-1 is as below tre manufactures 20,000 units of part A-1 each year for use on its Direct materials Oirect labour Variable manufacturing overheads $3 20 Fixed manufacturing overheads Total cost per unit $4.80 $7.00 $10.00 $25.00 An outside supplier has offered to sell 20,000 units of Part A-1 each year to Home Cuntre for $ 23.50 per part If Home Centre accepts this offer, the facilities now being used to manufacture Part A-1 could be rented to another company at an annual rental of $150,000. However, Home Centre has determined that $6 of the fixed manufacturing overhead being applied to Part A-1 would continue even if Part A-1 were purchased from the outside supplier Required using Make or Buy technique, prepare computations showing how much profits will increase or decrease if the outside supplier's offer is accepted. (10 marks)

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