Problem 8-24 (Part Level Submission) Oriole Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 40,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials Direct labor Variable manufacturing overhead $13 Direct fixed manufacturing overhead 10 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead6 Total unit cost $38 Clifton Clocks has offered to provide the timer units to Oriole at a price of $34 per unit. If Oriole accepts the offer, the current timer unit supervisory and clerical staff will be laid off