XYZ Company currently has the capacity to manufacture 250,000 widgets a year and 100,000 gadgets a year in its factory. XYZ Company has the following costs related to manufacturing and selling 200,000 widgets: (1) Direct materials and direct labor $840,000 (2) Variable manufacturing overhead $180,000 $40,000 (3) Depreciation on equipment only used for the widgets (4) Allocated share of depreciation on factory $100,000 $70,000 (5) Annual salary of widget production manager (6) Variable selling costs (commissions) $60,000 (7) Allocated share of fixed selling costs $80,000 Total $1,370,000 Assume that at the end of the year. XYZ still has 5,000 units on the shelf. XYZ has redesigned the widget for next year's production, making the old units nearly obsolete. As a result, they are trying to liquidate the old widgets. Which costs are relevant in determining the lowest amount that XYZ should accept as the selling price for the 5,000 widgets? (1), (2), (3), (4), (5),(6) (1), (2), (6) (1). (6) All of the costs above are relevant in this situation