Freestone Company is considering renting Machine Y to replace Machine X. It is expected that Y will waste less direct materials than does X. If Y is rented, X will be sold on the open market. For this decision, which of the following factors is (are) relevant? I. Cost of direct materials used II. Resale value of Machine X a. Cost of direct materials used and Resale value of Machine X O b. none of answers are correct O c. Resale value of Machine X O d. Cost of direct materials used