The supplier 3. Paxton Company can produce a part intermally or purchase from an outside supplier. wil ll he part to Paxton for s30. Currtly, Paxton incurs the following costs per unit to internally: $10/unit $14/unit Direct Materials Direct Labor Factory Overhead $11/unit (53 variable; $8 fixed) e above fixed overhead but will need to Purcha sedl extcnally l If the part is made internally-the company will eliminate th purchase additional equipment at a fixed cost of $50,000. Paxton needs 10,000 units of this component. Required: deciding factor .. determine whether the company should make the cases or buy them from the outside supplier Costs incurred to Make: Costs incurred to Should the company make the part or buy it from the cost, should the company consider? (b) What other factors (qualitative factors), besides 2. Variations Company had the following results of operations for the past year: $ 56,000 (16,000 (8,000 (6,000 (6,000 Sales (8,000 units at $7.00) Direct Materials ($2.00/unit) Direct Labor ($1.00/unit) Variable Overhead ($0.75/unit) Fixed Overhead Fixed selling and administrative expenses Operating income A foreign company (whose sales will not affect Variations' regular sales) offers to buy 700 u per unit. In addition to variable manufacturing costs, there would be an export cost of $0.30 Prepare an analysis of this additional business to show whether Variations should take this Required: Calculate the incremental income and identify whether the order should be accej points). Revenue from order: Less Relevant Expenses Net Profit (Loss) Should the order be accepted (yeso)? Why? (2.5 points) What qualitative factors should be considered? (2.5 points)