) Lasso Corporation manufactures Part B89 in its internal processing division. Lasso produces 12,000 units of Part B89 annually. The annual costs to produce Part B89 at the level of 12,000 units include: Direct materials $3.50 Direct labor $8.20 Variable manufacturing overhead $4.00 Fixed manufacturing overhead $3.20 Total cost $18.90 All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assuming Lasso can purchase 12,000 units of the part from the Nadal Parts Company for $20.30 each, and the facilities currently used to make the part could be rented out to another manufacturer for $21,000 a year, what should Lasso do? Requirements: 1) List ONLY the relevant information to solve the problem; and use a graphic organizer, such as flowcharts and tables, to show how to solve the problem.

) Patty's Mailbox Company produces a standard mailbox with variable manufacturing costs of $18 per unit. The selling price of the standard mailbox is $25 per unit. The fixed manufacturing overhead cost is $67,000. A normal production run includes 100,000 units. Patty's Mailbox Company has discovered an additional process to change the standard mailbox into a deluxe mailbox. Additional costs are estimated at $4 per unit. The deluxe mailbox would sell for $35. Additional fixed manufacturing overhead cost of $23,000 would be incurred if the deluxe mailbox is produced. There would be no change in the number of units produced. Make an analysis to determine if Patty's Mailbox Company should continue to produce and sell the standard mailbox or change the standard mailbox into a deluxe mailbox. Requirements: 1) List ONLY the relevant information to solve the problem; and use a graphic organizer, such as flowcharts and tables, to show how to solve the problem.