Rundle Bike Company makes the trames used to build its blcycles. During 2018, Rundle made 23,000 trames, the costs incurred follow Unit-level materials costs (23,000 units x $50) $1,150,000 Unit-level labor costs (23,000 units x $52) 1,196,000 Unit-level overhead costs (23,000 x $9) Depreciation on manufacturing equipment Bike frame production supervisor's salary Inventory holding costs Allocated portion of facility-level costs460,000 Total costs 207,000 98,000 76,900 330,000 $3,517,900 Rundle has an opportunity to purchase frames for $116 each. Additional Information 1. The manufa acturing equipment, which originally cost $560,000, has a book value of $430,000, a remaining useful life of and a zero salvage value. If the equipmen t is not used to produce bicycle frames, it can be leased for $67,000 per year years and a salvage value of $68,800. This equipment will increase productivity substantially, reducing unit -Jevel labor percent. Assume that Rundle will continue to produce and sell 23,000 frames per year in the future opportunity to purchase for $990,000 new manufacturing equipment that will have an expected useful life of four costs by 70 3. If Rundle outsources the frames, the company can eliminate 70 percent of the inventory holding costs Required e. Determine the avoidable cost per unit of making the bike frames, assuming that Rundle is considering the alternatives of making the b. Assuming that Rundle is considering whether to replace the old equipment with the new equipment determine the avoidable cost product using the existing equipment or outsourcing the product to the independent contractor. Based on the quantitative data, should Rundle outsource the bike frames? 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. Colculate the increase or decrease in the company's profit if the company uses new equipment ing that Rundle is considering whether to either purchase the new equipment or outsource the bike frame, calculate Required ARequired B Required O 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. Calculate the increase or decrease in the company's profit if the company uses new equipment. (Round "Avoidable cost per unit" to 2 decimal places.) Show less Old Equipment New Equipment Avoidable cost per unit Profit must by Assuming that Rundle is considering whether to either purchase the new equipment or outsource the bike frame, calculate. (Do not round intermediate calculations.) Should Rundle purchase new equipment or outsource? by Profit must