Seagull Lifeboats Ltd produces a wide range of marine safety equipment. One of their best selling products is the Surefloat life jacket. Data relative to the Surefloat life jacket follow: im Retail price Direct materials Direct labour Variable overhead Fixed overhead Production $49.95 per jacket $6.00 per jacket $6.00 per jacket $4.00 per jacket $4.00 per jacket 10,000 jackets per year Seagull Lifeboats can outsource the servicing of its production equipment to Miserly Machine Maintenance Ltd for a total cost of $12,000 per year. Currently the service function is included in variable overhead at $0.80 per jacket. If they do outsource the service function, fixed overhead will also decrease by $5,000. Required: (a) Should Seagull Lifeboats continue to service their own production equipment or should they outsource it to Miserly Machine Maintenance Ltd? Use calculations to support your answer. (4 marks) (b) Suppose that fixed overhead costs would not change if the service function is outsourced. Would that change your decision? Use calculations to support your answer. (3 marks) (c) Identify TWO qualitative factors that should be considered in this decision, and explain why these qualitative factors are important