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Question 4: (10 Marks) Armidale Incorporation (AI) normally manufactures tyres for its motorbikes. For the current year, Al is producing motorbikes at its full capacity with a maximum output it can produce with its current fixed costs structure. Al is allocating variable manufacturing overhead (MOH) costs to its output at 30% of direct labor (DL) costs. For Al, per tyre direct materials (DM) is $3 per tyre and DL cost is $3.60 per twie. Al normally produces 200,000 txies in a year. Another player in the industry, Tamworth Istes. (TT) sends a proposal to the management accountant at AI offering to produce twies for AI at $8 per TYLE If Al's management accountant agrees to TT's offer and the company accepts the offer, AI will not need to incur any of its variable manufacturing costs noted above. However, Al's $84,000 fixed MOH costs that have been committed to the production of twes.could not be saved and the company will continue to incur this costs. Required: a. Providing your calculations and based on the relevant costs analysis, should AI accept TT's offer? Use the template below to fill in your correct figures: (8 marks) Make Buy Direct materials ) Direct labor ( ) Variable manufacturing costs: ( X )... Purchase price ) Total annual cost $ 6. Would you support Al's decision to buy tyres from TT (ie, outsource twies production) and not manufacture in-house? Provide justification for your answer. (2 marks)