=+b Ace Ltd rents the machine used to make the chains. If Ace Ltd buys all of its chains from the outside vendor, it does not need to pay rent on this machine.

Required 1 Assume that if Ace Ltd purchases the chains from the outside vendor, the facility where the chains are currently made will remain idle. On the basis of financial considerations alone, should Ace Ltd accept the outside vendor’s offer at the anticipated production

(and sales) volume of 20000 units? Show your calculations.