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Answer the following questions: 1. Sheddy corporation provided the following cost information in relation to manufacturing bicycle saddles internally: Cost details: Direct materials $21,000 Direct

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Answer the following questions: 1. Sheddy corporation provided the following cost information in relation to manufacturing bicycle saddles internally: Cost details: Direct materials $21,000 Direct labor $15,000 Manufacturing overhead $10,000 Total Saddles cost $46,000 Sheddy corporation could have generated $20,000 revenue from renting the factory instead of manufacturing saddles. Sheddy paid $2000 five years back to purchase the machinery which is used today to manufacture saddles. Potential supplier offered Sheddy the saddles for total cost of $50,000. Required: a. What is the decision that needs to be made by Sheddy, make, or buy? Show the calculation to support your answer. (2 marks)

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