Saskatchewan Environmental Consulting (SEC) Inc. designs plans and specifications for asbestos abatement (removal) projects in public, private, and governmental buildings. Currently, SEC must conduct an air test before allowing the reoccupancy of a building from which asbestos has been removed. SEC subcontracts air-test samples to a laboratory for analysis by transmission electron microscopy (TEM). To offset the cost of TEM analysis, SEC charges its clients more than the subcontractor's fee. The only expenses in this system are the costs of shipping the air-test samples to the subcontractor and the labour involved in shipping the samples. With the growth of the business, SEC is having to consider either continuing to subcontract the TEM analysis to outside companies or developing its own TEM laboratory. With recent government regulation requiring the removal of asbestos, SEC expects about 1187 air-sample testings per year over eight years. The firm's MARR is known to be 15%. Subcontract option. The client is charged $396 per sample, which is higher than the subcontracting fee per sample is $218. Labour expenses are $1580 per year, and shipping expenses are estimated to be $0.50 per sample. TEM purchase option. The purchase and installation cost for the TEM is $403919. The equipment would last for eight years, at which time it should have no salvage value. The design and renovation cost is estimated to be $8803. The client is charged $310 per sample, based on the current market price. One fulltime manager and two part-time technicians are needed to operate the laboratory. Their combined annual salaries will be $50412. Material required to operate the lab includes carbon rods, copper grids, filter equipment, and acetone. The costs of these materials are estimated at $5653 per year. Utility costs, operating and maintenance costs, and the indirect labour needed to maintain the lab are estimated at $19949 per year. The extra income-tax expenses would be $20803. (a) Determine the cost of an air-sample test by the TEM (in-house) Unit Cost for Subcontract Option: $ Unit Cost for TEM Purchase Option: $ (b) What is the required number of air samples per year to make the two options equivalent? Number of Air samples