With the provided information, please solve parts A through C:

Part C Required: Should Omark make or buy the subassemblies?

A. Crest Information Technologies manufactures three sizes of copiers: light usage, medium usage, and heavy usage. Potential sales include 200 units of light, 240 units of medium, and 200 units of heavy per month. The maximum machine hours available each month are 12,000. Product information is provided below Medium Hea $300 $180 $40 500 $1,000 Selling Price Unit manufacturing costs: S300 100 $100 $460 240 $300 Variable 80 Fixed Unit gross profit 20 40 100 Machine Hours per unit Fixed manufacturing costs of $60,000 are assigned at the rate of $5 per machine hour Determine how many of each product should be produced each month. REQUIRED: B. Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12. Daily fixed costs are $3,000, and variable costs are S6 per gallon. An average of 750 gallons are sold each day. Clearwater has a capacity of 800 gallons per day REQUIRED: a. Determine the average cost per gallon. b. A bus loaded with 40 senior citizens stops by at closing time and the tour director offers Clearwater $300 for 40 gallons. Clearwater refuses, saying they would lose $2.50 on each gallon. Is Clearwater correct about losing the $2.50? Why or why not? c. fund-raising organization has offered Clearwater a one-year contract to buy 300 gallons a day for $7.50 per gallon. Should they accept the offer? Why or why not? C. Omark Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials S2 20 10 16 $48 Direct labor Variable overhead Fixed overhead Total Reliance Corp, has contacted Omark with an offer to sell them 5,000 of the subassemblies for $44 each. Omark will eliminate $50,000 of fixed overhead if it accepts the proposal