Electron Ltd. ("Electron') manufactures various electronic devices. Each of the devices (final products) which Electron sells to the entity's customers is assigned to a specific department within Electron. One of the devices which Electron manufactures is a laptop called "Valedictorian" and is assigned to department H within Electron. Each Valedictorian is defined as a unit as a Valedictorian is the final product sold to customers. The current market demand for Valedictorian is 670 per financial year, and department H has the sufficient operational and non-operational capacity to meet this demand. The market is willing to pay R8000 per Valedictorian. Electron's management accountant drafted the following budgeted costing report: The operational manager has performed research and encountered an international supplier which will be able to manufacture the required Valodictorians on Electron's behalf. In return, the international supplier would want a remuneration of R2200 per Valedictorian (inclusive of R290 delivery fees per unit). As the international supplier will manufacture the Valedictorian products, no addition of materials will be required to the purchased units. It will also cause the current employees of Department H to become redundant within Electron. A once-off retrenchment fee of R35 000 in total will be paid to these employees. Scenario 1 The variable manufacturing overheads will be avoidable should Valedictorians' production be outsourced whille the non-manufacturing variable overheads will reduce with R45 000 over a financial year. Foxed manufacturing overheads will be decreased to R110 900 per financial year, however, the non-manufacturing fixed overheads will remain as is as they are largely non-dependant on Valedictorians. Electron's capacity which was utilised on Valedictorians will initially have no alternative use. REQUIRED: 1.1. Refer to Scenario 1. Advise Electron Ltd. whether it would be more beneficial to continue manulacturing Valedictorians during the next financial year, OR to use the intemational supplier. Support your answer with the necessary calculations. (10 marks)