"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Nlewindt, managing director of Antilles Refining. NV., of Aruba. "At a price of $19 per drum, we would be paying $545 less than it costs us to manufacture the drums in our own plant. Since we use 85,000 drums a year, that would be an annual cost savings of $463,250.' Antilles Refining's current cost to manufacture one drum is given below (based on 85,000 drums per year) A decision about whether to make or buy the drums is especially important at this time because the equipment being used to make - to make the drums. The equipment would be rented for $255.000 per year. Alternative 2. Purchase the drums from an outside supplier at $19 per dium. The new equipment would be more efficient than the equipment that Antilles fiefining has been using and, according to the manufacturet, would reduce direct labor and variable overhead costs by 30%. The old equipment has no resale value. Supervision cost (\$85.000 per year) and direct thater. decimal places, Required: 1. Assuming that 85,000 drums are needed each year, whot is the financial advantage (disadvantage) of buying the drums from an outside supplier? 2. Assuming that Do drums are needed each year, what is the financiat advantage (disadvantage) of buying the drums from an outside supplier? (For all requirements, enter any "disodvanteges" as a negotive value. Do not rotund intermediate calculations.)