Keller Technology produces specialised machinery customised to their clents' need. Barings Systems had ordered a custom machine five months ago and paid a 5% deposit on the $275,000 machine. The cost of producing the machine for Barings are as follows: Just as Keller completed producing the machine, Barings went into receivership. As Barings was unable to pay for the machine, the deposit paid to Keller was forfeited. Keler is now considering the options avallable to them, with regards to the machine that Barings had ordered. The production manager has identified three options for Keller. Option A: Pegasus Engineering is wiling to buy the Barings' machine if it can be reworked to Pegasus' specifications. The re-worked machine wil be sold to Pegasus as a speciat order for $231,900. The additional identifiable costs to re-work the machine to Pegasus' requirements are as follows: Option B: It is possible to convert the Barings machine into a standard machine that Knller can normaly sell for $199,375. However, as this is a comension of a custom machine, a 4% discourt wil be offered to attract a buyer. In order to complete the conversion, Keller will need to incur the followng costs: Option C: Keler wal weft the machine in is current completed state for \$105.000 REQUIRED: a. Determine the dollar contribution each of the three allematives and choose which option is best (financially) for Keller. Show all workings. b. If Pegasus makes Keller a counteroffer, what is the lowest price Keller should accept for the reworked machinery from Pegasus? Explain your