manufacturing technology company demonstrated new software that was clearly superior to that purchased by the firm in April. The price of this software is dollar420,000. Corporate managers estimate that the new software would saw the company dollar32,000 annually in schedule-related costs compared to the recently installed software. Both software packages should last 10 years (the expected life of the computer hardware) and have no salvage value at that time. The company can sell its existing software for dollar178,000 if the new software is purchased. Should the company keep and use the software purchased earlier or buy the new software? Show computations to support your answer. LO.3 (Outsourcing) Glass Technologies manufactures fiberglass housings for portable generations. One part of a housing is a metal latch. Currently the company produces the 120,000 metal latch units required annually. Company management is considering purchasing the latch from an external vendor. The following data are available for making the decision: Cost per Unit to Manufacture Direct material dollar0.80 Direct labor 0.68 Variable overhead 0.36 Fixed overhead-applied 0.56 Total cost dollar2.40 Cost per Unit to Purchase price dollar1.96 Freight charges 0.04 Total cost dollar2.00 Assuming that all of Glass Technologies internal production costs are avoidable if the company purchases rather than makes the latch, what would be the net annual cost advantage to purchasing the latches? Assume that some of Glass Technologies' fixed overhead costs could not be avoided if it purchases rather than makes the latches. How much of the fixed overhead must be avoidable for the company to be indifferent as to making or buying the latches? LO.3 (Outsourcing) Witchita Metal Co. produces pickup truck bumpers that it sells on a wholesale basis to new car retailers. The average bumper sales price is dollar160. Normal annual sales volume is 150,000 units, which is the company's maximum production capacity, At this capacity