BTS Company uses part V17 to produce one of its products and the costs of producing the eight thousand units of the part that are needed annually were reported by the accounting department. Direct labour Direct materials Variable overhead Foreman's expense Depreciation of special equipment Facility overhead assigned Per Unit $8.3 $8.5 $5.4 $5.1 $5.0 $4.5 An outside supplier has offered to make the part and sell each at $30 to the company. If this offer is accepted, the foreman's salary and all of the variable costs, including direct labor, can be eliminated. The space used to produce part V17 could be used to receive rental income of $15,000 annually. The special equipment used to make the part was fully depreciated and has no residual value. The facility overhead represents fixed costs of the entire company and only five thousand and two hundred dollars of these facility overhead costs would be avoided if the outside supplier's offer were taken. Required: (a) By using a table with the below four column headings to compute the effect on the company's total net operating income of make or buy. Item Working Make $ Buy $ (10 marks) (b) How much of depreciation of the special equipment should be included in the above part (a) decision? Briefly explain in a few key words. (1 mark) (c) Should the company buy or make? (1 mark)