Ten West, Inc. has been experiencing the following costs when it produces 12,000 units of a subassembly: Direct materials..... Direct labor.... Fixed overhead. ..$108,000 72,000 100,000 A supplier offers to sell Ten West an identical product for $18 per unit. Determine whether Ten West should continue to make the product or should buy the product under each of the following conditions: (1) The fixed overhead represents the cost of insurance, taxes and depreciation on the manufacturing plant allocated to this product on the basis of the number of square feet occupied by the manufacturing operation. Ten West Inc. has no alternative plans for use of this space. If Ten West makes the product, it would be: (circle one) (a) $114,000 better off (b) $36,000 better off (c) $64,000 worse off (d) $60,000 better off (e) $100,000 worse off (2) The same information as part (1) with the following modification: $40,000 of the fixed costs represent the salary of a production manager who would be let go if Ten West discontinues manufacturing the product. If Ten West makes the product, it would be: (circle one) (a) $76,000 better off (b) $80,000 better off (c) $4,000 worse off (d) $12,000 better off (e) $24,000 worse off (3) The same information as part (1) with the following modification: Ten West can rent out the idle capacity in the plant if it discontinues manufacturing the product. The total rent would be $25,000 per year. If Ten West makes the product, it would be: (circle one) (a) $29,000 better off (b) $83,000 better off (c) $61,000 worse off (d) $11,000 better off (e) $14,000 worse off