Can you include the steps please.

Variable costs per unit: Direct materials Direct labour Factory overhead Distribution Total 9.00 4.50 3.00 1.50 18.00 Fixed costs per month: Factory overhead Selling and admin. Total 120,000 60,000 180,000 The variable distribution costs are for transportation to the retail stores. The current production and sales volume is 20,000 per year. Capacity is 25,000 units per year. A Tennessee manufacturing firm has offered a one-year contract to supply speaker parts at a cost of 6.00 per unit. If Miller Company accepts the offer, it will be able to reduce variable costs by 30 percent and rent unused space to an outside firm for 18,000 per year. All other information remains the same as the original data. What is the effect on profits if Miller Company buys from the Tennessee firm? a. decrease of 19,000 b. increase of 19,000 c. increase of 13,000 d. decrease of 6,000 ANSWER: d RATIONALE: SUPPORTING CALCULATIONS: Cost to buy (6 ~ 20,000) 120,000 Cost to make: Variable costs [(18.00 ~ 0.30) 20,000] 108,000 Opportunity costs 18,000 126,000 Profit will decrease by 6.000