Exercise 16-15 The make of buy decislon Lo23 Lakeview Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Lakeview. The supplier will charge Lakeview $320 per engine for the set of parts. Lakeview's current costs for those part sets are direct materials, $150, direct labor $75, and manufactunng overhead applied at 100% of direct labor vanable manufacturing overhead is considered to be 20% of the total, and fixed overhead will not change if the part sets are acquired from the outside supplier Required: a. What would be the net cost advantage or disadvantage if Lakeview decided to purchase the parts? Answer is not complete. Net cost disadvantage b. Should Lakeview Engine. Inc., continueto make the part sets or accept the omer to purchase them to 5320? .. Lakeview Engine, Inc. should continue to make the part sets. Lakeview Engine. Inc should accept the offer to purchase the part sets for 320 O Type here to search