Langmuir Company Ltd. currently produces 3,111111 units per year of SRIS {Shoe Racks], which is a component of the company's major products. SR] 5 has the following unit costs. Direct materials $ 35.511 Direct labour 21.1.1111 Indirect costs: Indirect labour {variable} 1'15 Heat and power [variable] 2.25 Fixed overhead M Total cost per unit $1114.1111 Langmuir Company Ltd. expect future atmml demand for SRIS to increase to 11,111111 units starting omit year, which is the present capacity. A supplier has offered to supply l l,[l[l11 units of SR] 5 at $39 per unit. If Langmuir decided to purchase the required 511.15, they could avoid fixed costs of $9.511 per unit based on their current production of 11,111111 units per year. REQUIRED: 1. Should Langmuir Company Ltd. subcontract the production of SR] 5'? Show calculations. {8 marks] 2. Assume that Langmuir Company Ltd. could rent out the vacant area resulting from discontinuing production of SRIS for $225,111111 per year. Does this change the decision you made in (l) above? Explain your rationale. {3 marks) 3. Explain any two qualitative factors that would also be relevant to the decision to make or buy 31115. (4 marks]