A) Waterloo Company makes portable charges for cell phones. Currently, Waterloo purchases 10,000 plastic housings a year from an outside company for $0.95 each. One of Waterloo engineers suggested that the company make its plastic housings in-house. Estimated unit costs are as follows: 0.40 Direct materials $0.30 Direct labour 0.20 Variable overhead 0.15 Fixed overhead Fixed overhead is $2,400 per year in equipment costs specifically traceable to the plastic housing line and $1,600 per year in general overhead costs to be allocated to this line. Required: If Waterloo makes the housing in-house, will net income be higher or lower, and by how much? Show All your calculations. Should they make the housing in-house? B) Oshawa Corporation manufactures a single product with the following unit costs for 10,000 units: 40 90 Direct materials $ 75 Direct labour Manufacturing overhead (40% variable) Selling expenses (60% variable) 30 Administrative expenses (20% variable) 15 Total per unit $250 Recently, a company approached Oshawa Corporation about buying 2,000 units for $200. Currently, the models are sold to dealers for $450. Oshawa's capacity is sufficient to produce the extra 3,000 units. Selling expenses would be incurred as normal on the special order. Required: Should Oshawa accept the special order if its goal is to maximize short-run profits? How much will income be affected