PART II: Do not just do the math or provide one line answers, explain the logic behind your position. 1. Eggbean Corp. is an eyeglass company. There are two important components to an eyeglass, the lenses and the frame. Eggbean is renowned for cutting edge research in lenses. They are debating whether they should also manufacture frames in-house or subcontract the manufacturing to Guatemala. Following is the cost structure for 200,000 frames per annum. Should Eggbean bring the frame manufacturing activity in-house or contract it to Guatemala? Please show the financial calculations and explain the logic (in words) for your answer (8 points). Inhouse Contracting Year 1 Year 1 $2,000,00 $45,00 Cost of the factory 0 Search costs 0 $50,00 Raw materials $400,000 Contract writing 0 $75,00 Overheads $25,000 Quality control and monitoring 0 Employees (5) $250,000 Cost per frame from supplier $12 Employee Hiring costs $25,000 Inhouse Year 2 Maintenance Contracting Year 2 Search costs $400,000 Raw materials $400,000 Contract writing $5,000 $10,00 0 $75,00 0 $10 Overheads Employees (5) Employee Hiring costs $25,000 $250,000 $25,000 Quality control and monitoring Cost per frame from supplier