Please explain the answers in red that were taken from an answer key. Please include necessary calculations.

Garro Company is currently manut production of several products made by Garro Direct Materials Direct Labor Variable Overhead Fixed Overhead Unit Cost Currently manufacturing part Ko producina 40,000 units annually. The part is used in the v several products made by Garro. The cost per unit for K9 is as follows: $14.00 6.00 3.00 5.00 $28.00 of the total fixed overhead assigned to K9, 5100,000 veread assigned to K9, $160.000 is direct fixed overhead (the lease of production machinery and no supervisor - neither of which will be needed if the line is dropped). The remaining fixed overhead is common fixed overhead. An outside supplier hal mon fixed overhead. An outside supplier has offered to sell the part to Garro for $26. There is no alternative use for the facilities currently used to produce the part Required: Should Garro make or buy part K97 Show computations to support your answer. P-10 Fill in the blanks: Sales Operating Income Total Assets Sales Margin Capital Turnover ROI Division 1 $800,000 $ 72,000 $ 400.000 9 Division $1,000,000 $ 100.000 250.000 10% 18% 40%