Problem 5 Giron Products manufactures 30,000 units of part J-6 each year for use on its...

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Problem 5 Giron Products manufactures 30,000 units of part J-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials 8.60 Direct labor 15.00 Variable manufacturing overhead Fixed manufacturing overhead Total cost of the part 2.40 9.00 35.00 An outside supplier has offered to sell 35,000 units of part J-6 each year to Giron Products for $31 per part. If Giron Products accepts this offer, the facilities now being used to manufacture part J-6 could be rented to another company at an annual rental of $85,000. However, Giron Products has determined that two-thirds of the fixed manufacturing overhead being applied to part J-6 would continue even if part J-6 were purchased from the outside supplier. Required: 12. Total ($) relevant cost to buy. 13. Total ($) relevant cost to make with opportunity cost. Problem 5 Giron Products manufactures 30,000 units of part J-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials 8.60 Direct labor 15.00 Variable manufacturing overhead Fixed manufacturing overhead Total cost of the part 2.40 9.00 35.00 An outside supplier has offered to sell 35,000 units of part J-6 each year to Giron Products for $31 per part. If Giron Products accepts this offer, the facilities now being used to manufacture part J-6 could be rented to another company at an annual rental of $85,000. However, Giron Products has determined that two-thirds of the fixed manufacturing overhead being applied to part J-6 would continue even if part J-6 were purchased from the outside supplier. Required: 12. Total ($) relevant cost to buy. 13. Total ($) relevant cost to make with opportunity cost.