a. John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $10,000 cash. Sherry estimated the following costs for the two cars: Grand Cherokee $10,000 Trail Blazer $25,000 $10,000 2 years Acquisition cost Repairs Remaining useful life Annual operating costs (Gas, maintenance, insurance)$1,780 Which car should John choose? What is the total savings over the remaining life? Show calculations 2 years $2,400 b. Sarasota Bicycles has been manufacturing its own wheels for its bikes. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 30% of direct labor cost. The direct materials and direct labor cost per unit to make the wheels are $3.00 and $3.60 respectively. Normal production is 200,000 wheels per year. A supplier offers to make the wheels at a price of $8 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $84,000 of fixed manufacturing overhead currently being charged to the wheels will have to be absorbed by other products. Prepare an incremental analysis for the decision to make or buy the wheels. Should the company make or buy the wheels