"That old equipment for producing carburetors is worn out said B Seebach, president of Hondrich Company, "We need to make a decision quickly. The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow Alterative t Rent new equipment for producing the carburetors for $96.000 per year, Alternative 2: Purchase carburetors from an outside supplier for $1715 each Hondrich Company's costs per unt of producing the carburetors internally with the old equipment are given below. These costs are based on a current activity level of 30,000 units per year. 5 5.00 9.00 Direct material Direct leur Variable overhead Tiedves (01.66 pervision 1. depreciation, 10.00 general couched) Total cost per $38.6 The new equipment would be more efficient and according to the manufacture would reduce direct labour costs and variable overhead costs by 25%. Supervision cost (548,000 per year and direct materials cost per unit would not be affected by the new equipment. The new equipment's capacity would be 60.000 carburetors per year The total general company overhead would be unaffected by this decision Required Seebach is unsure what the company should do and would like an analysis showing the unit couts and total costs for each of the two alternatives given above. Asume that 10.000 carburetors are needed each year a. What wit be the total relevant cont of 30.000 subassemblies they are manufactured internally as comowed to being purchased? (Prey 26 26 Next