Part A Kenyon's Company. a nranufacttu'er of portable electronic products. is planning to discontinue its Ebook reader product line. The discontinuation plan is based on the declining popularity of E-book readers in recent years. E-book reader product line has not been protable over the past several quarters. The most recent financial statement is provided below: Segment Income Statement for Ebook reader: Sales 820.000 Less: Variable Expenses: Manufacnuing 325.000 Shipping 53.000 378.000 Contribution Margin 442.000 Less: Fixed Expenses: Salary of E-book line supervisor 105.000 Depreciation of E-book equipment\" 123.000 Advertising of E-books 75.000 Allocated administrative expenses of Kenyon's 92.000 Company Allocated factory rental expense 94.000 489.000 Segment Income (Loss) {47:000; *E-book equipment has no resale value or alternative use. Required: Should Kenyon's Company continue or discontinue the E-book reader product line? Justify your position. Show the calculations by stating your assumptions clearly. [5 points] Part B Kenyon's Company manufactures a display part that is used in one of its products. Based on an annual production of 35,000 units, the unit cost of this part is $44. consisting of direct materials (815.), direct labour ($11). variable overhead (SS). equipment depreciation (S4), and factory overhead (89). Note that the equipment has no resale value or alternative use. Factory overhead is allocated on the basis of direct labour hours of different partss'products sharing the same factory. The management of Kenyon's Company is recently approached by an external supplier offering to provide this display part to Kenyon's at a price of $35 per unit. Required: Should Kenyon's Company purchase the part from the external supplier or should the company continue to produce the part itself? Show the calculations by stating your assumptions clearly. [5 points]