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1(a). Highlander Company uses 10,000 units of a part in its production process. The costs to make a part are DM per unit DL per unit VOH per unit FOH per unit $10 S25 S15 $10 Highlander has received a quote of $70 from a potential supplier for this part. If Highlander buys the part, 70 percent of the fixed overhead would continue Indicate whether Highlander should make or buy the part and the dollar amount difference between make and buy 1(b). Chappy manufactures two lines of slacks: Plain and Upscale. Last year, the Plain line sold 25,000 slacks and the Upscale sold 32,000 slacks. Chappy is considering to eliminate the Plain line based on the financial statement listed below Upscale $400,000 S900,000 Plain Sales Less: COGS 200,000 80,000 120.000 320,000 Unit level Deprecation production equipment 460,000 120,000 Gross Margin Less: operating expenses Unit level SG&A Corporate (facility level fixed cost 90,000 40,000 130,000 40,000 Net income (loss) S(10,000 Should Chappy eliminate $290,000 the Plain slacks line