The Engine Guys, produces specialized engines for "snow climber" buses. The company's normal monthly production volume is 5,500 engines, whereas its monthly production capacity is 11,000 engines. The current selling price per engine is $950. The cost per unit of manufacturing and marketing the engines at the normal volume is as follows: Required: Ansiwer the following independent questions. 1.0. The Provincial BulCompany wishes to purchase 670 engines in October. The bus company is willing to pay a fixed fee of for The Engine Guys, and there are sufficient orders to operate of 100% sapacity utilization. There will be no variable marketing costs on tus government contract. Compute the incremental beneft of the contract 1-b. Indicate whether the Provincial Bus Company's contract should be accepted 2.0. An outside contractor is willing to supply 2750 engines at a price of $456 per unit. If the offer is accepted, the compaty will make 2.750 engines in house and biy 2750 engines from the contractor. The company' ficed manufactiano costr will deciline by 2.0% and the varable makketing costs pet unit on the 2750 engines puichased will decline by 40 . Calculate the cost in each option, (Do not round intermediate calculations. Leave no cells blank - be certain to enter " O " wherever required.] 1.b. Indicate whether the Provncial Bus Company's contract should be accepted Yes No 2-a. An outside contractor is willing to supply 2750 engines at a price of $456 per unt if the offer is accepted the company wil make 2750 engines in house and buy 2750 engines fiom the contractor. The comparys fired manufocturing costs will decline by 20% and the vartable maketing costs per unit on the 2750 engines purchased wal decline by 40%. Calculate the cost in each option. (Do not round intermediote colculations. Leove no cells blank - be certoin to enter "Or wherever tequired,)