Question 13 (5 points) uestion poll The XYZ firm produces video game consoles. If it purchases the console cases from a different company, the XYZ also needs to buy specialized equipment to reduce non- compatibility problem. It is estimated that production rate of the gaming consoles is 23,815 units per week for 48 weeks of operation per year. The XYZ firm is planning to produce the consoles for seven years. The firm has two options to have the special equipment: make a part in-house or to buy it. If XYZ chooses make a part in-house option, it has annual labour costs: $1,445,633, annual incremental overhead costs: $1,088,110 and annual material costs: $2,048,511. If XYZ chooses to buy it option, it has to pay $405,000 for a new machine, which has $45,000 estimate market value at the end of 7 years. Moreover, buy it option also requires annual operating costs such as labour costs: $251.951, incremental overhead costs: $822,719 and purchasing empty cases ($0.85/unit) costs: $3,256,452. Assume that cash flows occur in discrete sums at the ends of years, and calculate the unit cost of buy it option given MARR 10%. a) Between $1.50 and $2.00 b) Between $2.00 and $2.50 c) None of the answers are correct d) Between $3.50 and $4.00