Scrooge McDuck Safe Limited is considering buying the hinges it uses in the manufacture of vaults from an outside vendor. Currently, Scrooge McDuck Safe Limited makes the hinges in its own manufacturing facility. Scrooge McDuck Safe Limited can buy the hinges for $1.50 each. The company uses 900,000 hinges each year. Fixed cost for Scrooge McDuck Safe Limited would not change if the company stopped making the hinges. Information about Scrooge McDuck Safe Limiteds cost to manufacture the 900,000 casters follows:

	Per Unit		Total
Direct material	$.50		$450,000
Direct labor	.10 .40 .25		90,000
Variable overhead			360,000
Fixed overhead			225,000
Total		$1.25		$1,125,000

Required:

1. Prepare a relevant cost schedule that indicates whether Scrooge McDuck Safe Limited should buy the hinges or continue to make them.

2. If Scrooge purchased the hinges, management has approached you that a dial producer wishes to rent the vacant space for $150,000 to produce their dials. Does this change your decision??
3. Give two qualitative factors would influence your decision and explain why they would influence you.