Part 2. Independent of part I, but based upon the same income statement data above: For the coming year only, a local subcontractor has offered to supply Masaba with one-half of its regular requirement (i.e., 150,000) shavers at a cost of $12 each. These shavers would be indistinguishable from Masaba's own production and Masaba would still incur the sales commission to sell these shavers. Market demand is limited to 300,000 shavers per year. If Masaba takes up the subcontractor's offer, it would thus need to make only the remaining 150,000 shavers itself, and so it could Either use the released factory capacity to make 300,000 clippers (Clippers are not the same as shavers they are a new product and one clipper takes only one-half the capacity taken by a shaver): Total Fixed manufacturing overhead will not change from the currently projected levels. The accountant estimates per unit manufacturing cost of the clippers as $9.20, which includes absorbed fixed manufacturing overhead of $0.50 per unit. Each clipper would be sold for $10 and sales commission on the clippers would be 5% of selling price, Or, it could rent out the released factory capacity for $200,000 Further, Masaba has all the direct material for the coming year's production of shavers already in stock. This material is not usable for clippers and will not be usable in future years for anything either, Nor can it be given to the subcontractor whose price of $12 is based on the use of his own materials. However the material left unused if the supplier's offer is taken up can fetch $150,000 'om a recycler. Finally, if Masaba subcontracts the shavers, it would have to use a van that it owns to transport the shavers from the subcontractor to its own warehouse. It was otherwise planning on selling off the van for $3,000. The van will not be saleable at a later date. The out-of-pocket costs of operating the van for transportation will be $10,000, Should Masaba accept the contractor's offer? Frame the decision as \"Buy the 150,000 shavers\" versus \"Make the 150,000 shavers\". Before presenting your analysis overleaf, identify the physical resources at hand that are differential given this framing. And recall that Masaba will in any case be making the remaining 150, 000 shavers itself