Current$-$Control Inc. manufactures a variety of electrical switches. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a switch to Current$-$Control for $$30$ per unit. To evaluate this offer, Current$-$Control has gathered the following information relating to its own cost of producing the switch internally: Per Unit$12,000$ Unitsper YearDirect materials$$12$ $$144,000$ Direct labour $10120,000$ Variable manufacturing overhead $336,000$ Fixed manufacturing overhead, traceable $8*96,000$ Fixed manufacturing overhead, common, but allocated $16192,000$ Total cost$$49$ $$588,000*25\%$ supervisory salaries; $75\%$ depreciation of special equipment $($no resale value$).$Required:$1.$ Assuming that the company has no alternative use for the facilities now being used to produce the switch, should the outside supplier's offer be accepted? $(10$ marks$)2.$ Suppose that if the switches were purchased, Current$-$Control could use the freed capacity to launch a new product. The segment margin of the new product would be $$70,000$ per year. should Current$-$Control accept the offer to buy the switches from the outside supplier with the same offer price? $(5$ marks$)$