akes the frames used to build ts bicycles. During 2018, Rundle made 23.0 frames, the costs incurred follow Unit-level materials costs (23,ee0 units x $se) Unit-level labor costs (23,000 units x $52) Unit-level overhead costs (23,000 x $9) Depreciation on manufacturing equipment Bike frame production supervisor's salary Inventory holding costs Allocated portion of facility-level costs Total costs $1,158,0ee 1,196,808 207,000 98,060 76,980 33e,e0 460,00 $3,517,900 Rundle has an opportunity to purchase frames for $116 each. Additional Information 1. The manufacturing equipment, which originally cost $560,000, has a book value of $430,000, a remaining useful life of eight years and a zero salvage value. If the equipment is not used to produce bicycle frames, it can be leased for $67000 per year 2. Rundle has the opportunity to purchase for $990,000 new manufacturing equipment that will have an expected useful life of four years and a salvage value of $68,800. This equipment will increase productivity substantially, reducing unit-level labor costs by 70 percent Assume that Rundle will continue to produce and sell 23,000 frames per year in the future 3. If Rundle outsources the frames, the company can eliminate 70 percent of the inventory holding costs