For one of its products Kelly Corp makes 4,000 units per year of a part called an radial cap. Data concerning the unit production costs of the radial cap follow: Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufacturing Cost per Unit $35 $10 $8 $20 $73 An outside supplier has offered to sell Kelly Corp all of the radial cap taps it requires. 40% of the above fixed manufacturing overhead could be avoided if Kelly Corp decided to discontinue making the caps. Assume that direct labour is a variable cost. Required: a) Assume Kelly Corp has no alternative use for the facilities presently devoted to production of the radial caps. If the outside supplier offers to sell the axial taps for $65 each, should Kelly Corp accept the offer? Fully support your answer with appropriate calculations. b) Assume that Kelly Corp could use the facilities presently devoted to production of the radial caps to expand production of another product that would yield an additional contribution margin of $80,000 annually. What is the maximum price Kelly Corp should be willing to pay the outside supplier for radial caps