Betsy Reynolds recently started a job as an administrative assistant in the cost accounting department of Mickey Manufacturing. New to the area of cost accounting, Betsy is puzzled by the fact that one of Mickey's manufactured products, RCP10, seems to have a different cost, depending on who asks for it. When the marketing department requested the cost of RCP10 in order to determine pricing for the new catalog, Betsy was told to report one amount, but when a request came in the very next day from the financial reporting department, the cost of RCP10, she was told the cost was very different. Betsy runs a report using Mickey's cost accounting system, which produces the following cost elements for one unit of RCP10. Direct Materials $28.50 Direct Manufacturing Labor $16.35 Variable Manufacturing Overhead $8.76 Allocated fixed manufacturing overhead $32.84 Research and development costs specific to RCP10* $6.20 Marketing Costs* $5.95 Sales Commissions* $11.40 Allocated administrative costs of production department $5.38 Allocated administrative costs of corporate headquarters $18.60 Customer service costs* $3.05 Distribution costs* $8.80 *these costs are specific to RCP10 but would not be eliminated if RCP10 were purchased from an outside supplier. Required: A. Explain to Betsy why the costs given to the marketing and financial reporting departments would be different. B. Calculate the cost of one unit of RCP10 to determine the following: a. The selling price of RCP10 b. The cost of inventory for financial reporting c. Whether to continue manufacturing RCP10 or to purchase it from outside source. (Assume that RCP10 is used as a component in one of Mickey's other products)