Coffee House Company produces a plastic coupler that is used for one of its products. The costs associated with the production of 10,000 plastic couplers are as follows:

Direct materials	$ 100,000
Direct labour	170,000
Variable factory overhead	300,000
Fixed factory overhead	250,000
	$820,000

Of the fixed factory overhead costs, $35,000 is avoidable.

Required:

Part 1. There is no alternative use for the facilities, should Coffee House take advantage of an offer from an outside vendor who is willing to sell Coffee House Company 10,000 units of the plastic couplers for $64 per unit?

Part 2. Would your answer to Part (1) change if the facilities could be rented for $50,000 a year?