I need detailed solutions of the following problem. Please answer both the parts step by step. Do not skip any parts

Hanson INC makes 1,000 units per year of a part called a prostiron for use in one of its products. Data concerning the unit production costs of the prostiron follow:

Direct Materials	$342
Direct Labor	80
Variable Manufacturing overhead	48
Fixed manufacturing overhead	520
Total manufacturing cost per unit	$990(sum)

An outside supplier has offered to sell Hanson INC all of the prostirons it requires. If Hanson INC decided to discontinue making the prostirons, 10 percent of the above fixed manufacturing overhead costs could be avoided.

Required:

a. Assume Hanson INC has no alternative use for the facilities presently devoted to production of the prostirons. If the outside suppliers offer to sell the prositrons for $850 each, should Hanson INC accept the offer. Fully support your answer with appropriate calculations.

b. Assume that Hanson INC could use the facilities presently devoted to production of the prostirons to expand production of another product that would yield an additional contribution margin of $50,000 annually. What is the maximum price that Hanson INC should be willing to pay the outside supplier for the prositrons.