Focror Compary estimates that producing a unit of product would roquite $8.20 per unit of ditect matmmais and 524.20 per unit of ditted tabor. Factor Company normally applles overhead using a predetermined overheod rate of tson. of direct labor cost Factar Gompeny estimates incremental overhead of $14.35 per unit of product. An outside suppller ollers to provide Factor Cormbany with bel the units nineds ot a price of $44.75 per unit. Factor Company should choose to: Muttiple choice Buy since the relevant cost to make it is $59.05. Make since the relevant cost to make it is $32.40 Make since the relevant cost to make it is $46.75. Buy since the relevant cost to make it is $46.75 Buy since the relevant cost to make it is $32.40. hannor Company has ofd equlpment with a book value of $171,000 and a remoining five-yeor useful ltfe. Tanner is consisecirva purchiving new cauipment at a price of $222,000. Tanrier can sell the old oquipment now for $148.000. The old equipithent has variabie numuthcturna coens or $80,000 per yeat. The new oquipment will roduce variable manufacturing coats by $33.000 per year over its fiveyeor useful ufe. The teu increase or decrease in net income by replecing the old equipment with the now equipment is: Multiple Cholce $34.200 decrease. $64,000 increase. $158,000 increase. $64,000 decrease. $91,000 increase