Aequlred information The following information applies no the questions displayed below] HighValu tncorporated manufactures a moderately priced set of lawn furniture (n table and four chalrs) that it seils for \$275. The company currently manufactures and sells 7,000 sets per year. The manufacturing costs include $95 for direct materiais and $55 for direct labor per set. The overhead charge per set is $45, which consists entirely of foced costs. Assume that Highvalu currently purchases the chair cushions for its lawm set from an outside vendor for $20 per set. HighValu's chiefoperabions officer wants an analysis of the comparathe costs of mariufacturing these cushions to determine whether bringing the manufacturing in-house would save the compary money. Additional information shows that if HighValu were to manufacture the cushlons, the direct materials cost would be $8 and the direct labor cost would be $6 per set in addition, to produce the cushions. HighValu would have to purchase cutting and sewing equiprment, which would add $20,000 to annual fhered costs. Requlrefi: 1. What is the total relevant cost per year to purchase the chair cushions from the outside supplier? 2. What is the total relevant cost per year to produce the chair cushions internally? 3. What is the estimated net annual effect on operating income of producing the cushions internally rather than purchasing the cushions from an external supplier