Sunland Industries must decide whether to make-or-buy some of its components. The costs of producing 203000 battery packs for its product are as follows: The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2320 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? An increase in net income of $6380. An increase in net income of $8120. An increase in net income of $4060. A decrease in net income of $4060. It costs Cullumber Company $15 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product sells for $25. Homer Industries offers to purchase 6400 units at $17 each. In the deal, Cullumber will incur special shipping costs of $1.50 per unit. If the special offer is accepted and produced with unused capacity, net income will: decrease $51200 increase $12800. increase $3200. decrease $6400