Vector Manufacturing (VM) makes replacement parts for the automotive industry. One particular part can be manufactured at a unit cost of \($0.75\) for material and \($0.25\) for direct labor. Nonfactory costs are estimated to be twice the direct labor costs. An order for 500,000 units is currently being processed. Halfway through the current order, a new manufacturing process becomes available that will reduce unit costs to \($0.52\) for material and \($0.16\) for direct labor. Under the new method, nonfactory costs are still estimated at twice the direct labor cost but must be updated to reflect the new direct labor unit cost. If implemented, the new process will require the purchase of \($90\),000 in additional tooling just to complete this single order.

a. What is the cost for the second half of the order if VM completes the order using the original method?

b. What is the cost for the second half of the order if VM switches to the new manufacturing method?

c. Based on cost, which method should be selected?