II. Problem #1 - Make or Buy (12 points) Lasso Corporation manufactures Part 389 in its internal processing division. Lasso produces 11,000 units of Part 389 annually. The annual costs to produce Part 389 at the level of 11,000 units include: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost $3.20 $8.30 $4.20 $3.00 $18.7g All of the fixed manufacturing overhead costs would continue whether Part 389 is made internally or purchased from an outside supplier. Assuming Lasso can purchase 11,000 units of the part from the Nadal Parts Company for $20.50 each, and the facilities currently used to make the part could be rented out to another manufacturer for $18,000 a year Using the information provided perform or answer the following: a. Calculate the savings or additional cost per unit to buy the part b. Calculate the total savings or additional cost to buy the part. c. Should Lasso buy the part or continue to make the part? d. What is the minimum rent Lasso would need to collect to consider buying the part? Question 3 On September 1, 2020 a company sells and delivers a machine for 550.000 that includes a 10 year warranty that provides all necessary repairs and maintenance work. While the company does not sell the machine without the warranty nor the warranty separately, a similar machine sold by another vendor with no provision for this extensive warranty sells for for $42.000. The company estimates that it will cost $5.000 to provide the warranty Services over the 10 years and its typical mark-up is 30% of cost. How much revenue will be recognized on the September 1, 2020 on the sale of this machine (round your answer to the nearest dollar)? By the end of 2020 the company had incurred costs totaling $500 for repairs and maintenance of the machine sold on September 1. The estimated cost of total warranty work has not changed. How much additional revenue should be recognized on this transaction at the end of 2020 (round your answer to the nearest dollar)