Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Moblility. If Mobility makes the assembly. its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials Direct labor Variable overhead Fixed overhead $33 112 19 38 $202 Total Trailblazers has offered to sell the assembly to Mobility for $169 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $38.250 Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Answer is complete but not entirely correct. Status Quo Alternative Difference 21,800 higher 59,400lower Trailblazers' offer 304,200 59,400 Materials Ieasor li ahor 201 600 201 600 Trailblazers has offered to sell the assembly to Mobility for $169 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $38,250 Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Answer is complete but not entirely correct. Status Quo Alternative Difference s 304,200 s 304,200 higher lower Trailblazers' offer 0 59,400 Materials Labor Variable overhead Foxed overhead applied 59,400 0 lower 201,600 201,600 0 lower 34,200 34,200 C lower 38,250 212,400 130,950 $ 637,450 lower $ 507,600 435,150 Total costs b. Should Mobility make rear wheel assemblies or buy them from Trailblazers? Buy O