Question 2 The Bellevue Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $953 Direct labor 694 Variable overhead 321 Total variable costs Fixed costs Depreciation of equipment 505 Depreciation of building 214 Supervisory sales 287 Total feed costs 1.007 Totalcov $2.975 The company has an offer from Duvall Valves to produce the part for $2,027 per unit and supply 1,080 valves (the number needed in the coming year). I the company accepts this offer and shuts down production of valves, production workers and wpervisors will be reassigned to other areas where, unfortunately, they really are not needed. The equipment cannot be used elsewhere in the company, and has no market value However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $54,550 per year. Should the company make or buy the valve? Total increment f buying valves The company should COS Servings