Help Save & E Che 4 Problem 13-29 Outsourcing decision affected by equipment replacement LO 13-3, 13-5 6 points Perez Bike Company makes the frames used to build its bicycles. During 2018, Perez made 24000 frames, the costs incurred follow eBook Print References Unit-level materials costs (24,000 units x $55) Unit-level labor costs (24,e00 units x $58) Unit-level overhead costs (24,000 x $10) Depreciation on manufacturing equipment Bike frame production supervisor's salary Inventory holding costs Allocated portion of facility-level costs Total costs $1,320,e8 1,392,080 240,800 94,880 81,400 310,006e 470,000 $3,987,400 Perez has an opportunity to purchase frames for $118 each. Additional Information 1. The manufacturing equipment, which originally cost $570 .000, has a book value of $460,000, a remaining useful life of five years. and a zero salvage value. If the equipment is not used to produce bicycle frames, it can be leased for $69,000 per year 2. Perez has the opportunity to purchase for $920,00 0 new manufacturing equipment that will have an expected useful life of five This equipment will increase productivity substantially, reducing unit-level labor costs by years and a salvage value of $71.000. erez will continue to produce and sell 24,000 frames per year in the future. urces the frames, the company can eliminate 80 percent of the inventory holding costs