Exercise 6-15 The make or buy decision LO 2,3 Lakeview Engine, Inc produces engines for the watercraft industry An outside manutacturer has offered to supply several component parts used in the engine assemblies, which are currenthy being produced by Lakeview The supplier will charge Lakeview $305 per engine for the set of parts. Lakeview's current costs for those part sets are direct materials, $160, direct labor, $75, and ut ct ng overhead ap ed at 100% of direct labor Variable manufacturing overt ead is considered to be 20% of the lot. ard bed o the outside supplier rhead wil not charge if the part sets are ac ured fr Required: a, what would be the net cost advantage or dsadvantage Lakeview decided to purchase the parts? b. Should Lakeview Engine, inc continue to make the part sets or accept the offer to purchase them for $3057 O Lakedew Engine Inc should continue to make the part sets O Lakenen Engne, nc should accept the offer to purchase the part sets for 305 Hints Reterences Book&Resources