(suggested time 6 minutes, 4 marks) Quick Motors manufactured 1000 gears that are used in its motors and incurred the following costs: Direct materials $50,000 Direct about 19,000 Variable mandacturing overhead 30,000 Fixed manufacturing overhead 20.000 $119.000 A supplier has offered to sell the 1000 gears to Quick for $100 each. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the gears were purchased from the outside firm If the gears are purchased from the supplier, Quick has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $3,000. What should the company do In this makes buy scenario what are the total relevant costs incurred by the company to make these 1000 gears? The incremental income is income (loss) from buying frames and producing another product is $ (suggested time 6 minutes, 4 marks) Quick Motors manufactured 1000 gears that are used in its motors and incurred the following Direct materials $50,000 Direct labour 19,000 Variable manufacturing overhead 30,000 20.000 Fixed manufacturing overhead $119.000 A supplier has offered to sell the 1000 gears to Quick for $100 each. The fred manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced the gears were purchased from the outside firm. If the gears are purchased from the supplier, Quick has the opportunity to use the factory ouments produce another product which is estimated to have a contribution margin of $3.000. What should the company do? In this make vs. buy scenario, what are the total relevant costs incurred by the company to make these 1000 gears? $ The incremental income is The incremental income (loss) from buying frames and producing another product