Part E43 is used in one of Ran Corporation's products. The company's Accounting Department reports the following costs of producing the 14,000 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $18.50 each If this offer is accepted, the supervisor salary and all of the variable costs. inctuding direct labor. can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside suppliers offer were accepted, only $7.500 of these allocated gencral overhead costs would be avoided. In addition, the space used to produce part E43 could be ysed to make more of one of the company's other products. generating an additional seement margin of $77,250 per year for that product. Required: a. Prepare a report that shows the effect on the company's total net operating income of buying part E43 from the supplier rather than continuing to make it inside the company, b. Which alternative should the company choose