1. Current-Control Inc. manufactures a variety of electrical switches. The company is currently manufacturing all of its own component parts An outside supplier has offered to sell a switch to Current-Control for $32 per unit. To evaluate this offer, Current-Control has gathered the following information relating to its own cost of producing the switch internally Per 12.000 Units Direct materials Direct labour Variable manufacturing overhead Fioxed manufacturing overhead, traceable Fixed manufacturing overhead, common, but allocated Unit per Year $12 $144,000 10 120,000 336,000 96,000 192.000 16 Total cost $49 $588,000 .25% supervisory saianes: 75% depreciation of special equipment (no resale value) Required: 1-a. Assuming that the company has no alternative use for the facilities now being used to produce the switch compute the total cost of making and buying the parts Make Buy Total cost (12.000 units) 1-b. Should the outs de suppliers offer be accepted? O Accept O Reject 2-a. Suppose that if the switches were puronased, Current-Control could use the freed capacity to aunch a new product. The segment margin of the new product woula be $78,000 per year. Compute the total cost of making and buying the oarts Make Buy Tota cost (12.000 units)