Blossom 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 $11
Direct labor 5
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 8(30% salaries, 70% depreciation)
Allocated fixed manufacturing overhead 5
Total unit cost $31
Clifton Clocks has offered to provide the timer units to Blossom at a price of $32 per unit. If Blossom accepts the offer, the current timer unit supervisory and clerical staff will be laid off.
Assume that if Blossom Water accepts Clifton’s offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 80,000 of the new lights each year at a price of $10. Variable costs of the lights are expected to be $7 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make or buy the timer units.

2. activities included (and not included) in the calculation ofgdp the gross domestic product (gdp) of the united states is defined as the all in a given period of time. based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the gdp of the united states in 2017. scenario 2017 gdp included excluded calculo, a u.s. electronics company, produces a calculator at a plant in indonesia on march 17, 2017. calculo imports the calculator into the united states on may 21, 2017. awake cafe, a u.s. coffee company, produces a latte at its location in minneapolis on january 9, 2017. it sells the latte to a customer immediately. fastlane, a japanese automobile company, produces a sedan at a plant in indiana on december 12, 2017. a family buys the sedan on december 24. you chop down a cherry tree on your property in california and make a dining room table in 2017. a similar table sells for $800 in a local furniture store. graincorp, a u.s. agricultural company, produces corn syrup at a plant in iowa on september 19, 2017. it sells the corn syrup to crunchy's for use in the production of cereal that will be made in the united states in 2017. (note: focus exclusively on whether production of the corn syrup increases gdp directly, and ignore the effect of production of the cereal on gdp.)