Use the above information to answer all of the following questions.

Question 23 (1 point) If Huang Inc. buys the timers, would their operating income increase, decrease, or stay the same? 0 a] Decrease O b] Stay the same 0 c) Increase Question 24 (2 points) If Huang Inc. buys the timer, by how much would their operating income change? Input your answeras a positive number. Question 25 (1 point) If Huang Inc. could rent out the space that is currently used to produce the timers for $19,000 per yea r, should the company make or buy the timers? O a] Make 0 b) Indifferent O c) Buy Question 26 (2 points) If Huang Inc. buys the part and then rents out the space that is currently used to produce the timers for $19,000 per year, by how much would their ope rating income change? Input your answeras a positive number. (6 Questions, 10 Marks) Huang Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 42,000 timer units annually. The cost per unit for the timer is as follows: Description Cost Direct materials 4.80 Direct labour 1.60 Variable overhead 1.20 Fixed overhead 2.80 Total cost 10.40 Of the total fixed overhead assigned to the timers, $25,200 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead. An outside supplier has offered to sell the timers to Huang Inc. for $8.45 per unit. Use the above information to answer all of the following questions. Question 21 (1 point) Saved If there was no other alternative use for the facilities that is currently used to produce the timers, should Huang Inc. make or buy the timers? ( a) Make ( b) Buy c) Indifferent Question 22 (3 points) What is the most that Huang Inc. would be willing to pay an outside supplier for one unit of the timer? A/