ABC Lighting is a local manufacturer of modern industrial lighting fixtures used in Commercial buildings and Convention Centres. The lights are architecturally unique and provide quality design elements to high end projects throughout Western Canada and the United States. From a pricing perspective, most of their lights sell in a range of $2500-$4500 per light. One of the components that ABC currently manufactures for all its lighting products is an XN103 part, but the company is currently considering outsourcing the part to a overseas manufacturer. The company normal sells 8,000 units per year with the following costs of producing and selling a single unit of XN103 part: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total Cost per XN103 part. PER UNIT $110 45 35 25 $215 An outside overseas supplier has offered to sell 8,000 units of the XN103 part to ABC Lighting for $205 per part. If ABC accepts the offer, ABC has determined that $15 of the fixed manufacturing ($5 of depreciation and $10 of general allocated overhead) will continue even if the part were purchased from an outside supplier. Required: 1. Determine the relevant cost per unit, and in total to continue making the XN103 part inhouse. 3 marks 2. Determine the relevant cost per unit, and in total to outsource the XN103 part. If the offer is accepted, how will annual profits be increased or decreased? 3 marks 3. Provide a qualitative analysis of ABC's decision to outsource the production of it's XN103 part. (a minimum of 2 pros and 2 cons) 4 marks 4. Based on both your quantitative and qualitative analysis, what do you recommend for ABC and why or why not? (not a one word answer, imagine you are speaking to the owner) 2 marks 5. If the company could rent the warehouse space now being used to produce the XN103 to another company for an annual rental fee of $60,000, what would be the impact on your qualitative analysis? Would this change your decision in #4? why or why not? 3 marks