1. [7 points] Star-Lord Industrial uses ten (10) units of Part No. X999 each month in the production of large ship engines. The cost to manufacture one Material handling, which is not included in the manufacturing overhead, represents the direct variable costs of the receiving department that are applied to direct materials and purchased components on the basis of their costs. Star-Lord's annual manufacturing overhead budget is one-third variable and two-thirds fixed. Drax, one of Star-Lord's suppliers, has offered to supply X999 at a price of $30,000 per unit. While evaluating this proposal, Star-Lord considered the possibility of renting the idle capacity left from the production of X999 for $50,000 per month. Required: a. [5 points] Should Star-Lord accept Drax's offer based on financial considerations only? State your recommendation below and use Form 1 to show your work. b. [2 points] Regardless of your answer in a., what qualitative factors must Star-Lord consider before making its decision