Rundle Bike Company makes the frames used to build its bicycles. During 2018. Rundle made 23,000 frames the costs incurred follow:l uait-level saterials conte (23,000 units $50 usit level labor costn (23,000 unsta652 unie-level overlead coas (23,000 $91 Depzecintion on anufoctoring egu iprent Bike frase produotion upervisor's slary Iaventory boldiag cost Alloeatod portion of tacflity-level coate Total costs 1,196,000 207,000 8.000 6.900 330,000 460,000 53.517.900 Rundle has en opportunity to purchase frames for $116 each Additional Informatlon 1. The manufecturing equipment, which originelly cost $560,000, has a book value of $430,000, a remaining uselul life of eight years and a zero salvage value. I the equipment is not used to produce bicycle frames, it can be leased for $67,000 per yeer 2. Rundle has the opportunity to purchase for $990.000 new manufacturing equipment that wll have an expected useful life of four 3. if Rundie outsources the frames, the company can eliminate 70 percent of the inventory holding costs Required a. Determine the avoidable cost per unit of making the bike frames, assuming that Rundle is considering the alternatives of making the years and e salvage value of $68,800. This equipment will increase productivity substantielly, reducing unit-level labor costs by 70 percent Assume that Rundle wit coninue to produce and sell 23,000 frames per year in the future. product using the eisting equipment or outsourcing the product to the independent contractot Besed on the quantitetive data, should Rundie outsource the bike frames? b. Assuming that Rund e is considering whether to replace the old equipment with the new equipment, determine the avoidable cost per unit to produce the bike frames using the new equipment and the avoidable cost per unit to produce the bike frames using the old equipment. Calculate the increase or decrease in the company's profit the company uses new equipment. c. Assuming that Rundle is considering whether to either purchase the new equipment or outsource the bike frame, calculate Complete this question by entering your answers in the tabs below. Requ/red A Requred& Required C Determine the avoidable cost per unit of making the bike frames, assuming that Rundle is considering the alternatives of making the product using the existing equipment or outsourcing the product to the independent contractor. Based on the qusnitative data, should Rundls outsource the bike frames? (Round your answer to 2 decimal places) Avodable cost pervnt tor makin the produet Rund e should outsource the bke frames? per unt Requied Complete this question by entering your answers in the tabs below Recu red A Requ red & Requlred C Assuming that Rundle is considering whether to replace the old equipment with the new equipment, determine the avoidable cost per unit to produce the bike frames using the new equipment and the avoidable cost per unit to produce the bike frames using the old equipment. Celcute the increase or decrease in the company's proft f the compeny uses new equipment. (Round Avoidable cost per unit to 2 decimal places.) Show less Avodablo cost per unt Profa must NRAR by Required Complete this question by entering your answers in the tabs below. Rccuired ARequfred B Requircd C sdering whether to either purchase the new equipment Assuming that Rundle is cons idering whether to either prchase the new equipment or outsource the bike frame celculatc. (Do not round intermediate colcufations.) Snould Rundie purchase now cquoment or oulsource? Profi must ty