value: 5.00 points Climate-Control, Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Climate-Control for $20 per unit. To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing the thermostat internally: 2a. Suppose that if the thermostats were purchased, Climate-Control, Inc., could use the freed capacity to launch a new product. The segment margin of the new product would be $65,000 per year. Compute the total cost of making and buying the parts. (Omit the "$" sign in your response.) Per 15,000 Units Unit per year Direct materials $ 6 $ 90,000 Direct labor Variable manufacturing overhead 8 120,000 1 15,000 Fixed manufacturing overhead, traceable 5* 75,000 Fixed manufacturing overhead, common, but allocated 10 150,000 Total cost $30 $450,000 *40% supervisory salaries; 60% depreciation of special equipment (no resale value). Required: 1a. Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, compute the total cost of making and buying the parts. (Omit the "$" sign in your response.) Total relevant cost (15,000 units) Make 1b. Should the outside supplier's offer be accepted? Buy Accept Reject Total relevant cost (15,000 units) Make Buy 2b. Should Climate-Control, Inc., accept the offer to buy the thermostats from the outside supplier for $20 each? Accept Reject