Cost Accounting -please see the attachment. Show work

Make or Buy Decision The Blow-out Company produces air compressors. The company has one large Plant and uses about a fourth of the plant space to produce a key component, the motors for the air compressors. Recently, an outside supplier has offered to provide the motors at a cost of $42 each. Ifthe Blow-out Company purchases the motors, the company could rent the plant space currently used The Blow-out company currently produces 5,000 motors per month. Monthly costs associated $15 Direct materials 12 Direct labor 8 Variable electric costs for running motor production machinery 7 Depreciation on motor production equipment 2 Property taxes allocated to motor production dept. [$35,000 per month / 5,000 units] I Salary of motor production supervisor [$10,000 month / 5,000 units] $45 Total [$5,000 per month / 5,000 units] If the company outsources motor production, the production workers in the motor production department will be laid-off. The motor production supervisor would be re-assigned to an open position in another department of the company (at same salary). With outsourcing, motor production equipment would be scrapped for zero value. Required Should the firm make the motors for the air compressors "in house" or buy the motors from the outside supplier? Calculate monthly relevant costs for each alternative. Asset Replacement A company currently has a production machine that costs $10,000 per year to operate. The $10,000 consists primarily of electric and maintenance. Also, the amual depreciation is $5,000 per year. This is based upon an initial purchase cost of $25,000 which is depreciated over five years using the straight line method. Three years have elapsed since the purchase of the machine. The remaining estimated lifetime of the machine is two years. The salvage value of the machine is $4,000 if sold today and zero if sold in two years. The company could purchase a new machine that is cheaper to operate. Annual operating costs would be only $1,000. The acquisition cost of the new machine is $14,000. The machine has an estimated useful lifetime of two years. The salvage value in two years is expected to be zero. Should the company keep its existing machine or purchase the new machine? Do a relevant cost analysis for two years. Also, calculate the book value ofthe old machine. Determine the financial accounting gain/loss if the company sells the old machine.