The Huron Division of the Great Lakes Corporation manufactures subassemblies used in Great Lakes's final products. Lynn Hardt of Huron's profit planning department has been assigned the task of determing whether Huron should continue to manufacture a subassembly component, THINGAMAJIG, or purchase it from Hudson Bay Company, an outside supplier. Hudson Bay has submitted a bid to manufacture and supply the 30,000 units of THINGAMAJIG Great Lakes will need for 2019 at a per-unit price of $20.00. Hudson Bay has assured Great Lakes that the units will be delivered according to Great Lakes's production specifications and needs. The contract price of $20.00 is applcable only in 2019, but Hudson Bay is interested into a long-term arrangement beyond 2019. Lynn has submitted the following information regarding Huron's cost to manufacture 25,000 units of THINGAMAJIG in 2018: Direct materials $168,750 Direct labour 100,000 Factory space rental 150,000 Equipment leasing costs 45,000 Other manufacturing costs 250,000 Total Manufacturing costs $ 713,750 . Lynn has collected the following information related to manufacturing THINGAMAJIG Equipment leasing costs represent special equipment used to manufacture THINGAMAJIG. Huron con terminate this lease by paying the valent of 1 month's lease payment for each of the 2 years left on its lease agreement. Forty percent of the other manufacturing overhead is considered variable. Variable overhead changes with the number of units produced this rate per unit is not expected to change in 2019. The fixed manufacturing overhead costs are not expected to change in total) whether Huron manuures or purchases THINGAMAJIG. Huron can use equipment other than the leased equipment in its other manufacturing operations Direct materials cost used in the production of THINGAMAJIG is expected to increase 7% in 2019. . Huron's direct labour contract calls for a 4% wage increase in 2019. The facilities used to manufacture THINGAMAJIG are rented under a month-to-month rental agreement. Huron would have no need for thisce if it does not manufacture THINGAMAJIG. Thus, Huron can withdraw from the rental agreement without any penalty John Porter. Huron's divisional manager, stopped by Lynn's office to voice his opinion regarding outsourcing of THINGAMAJIG. He commented, "la really concerned about outsourcing THINGAMAJIG. I have a son-in-law and onephew, not to mention a member of our bowling team, who work on THING AMAJIG They could lose their jobs if we buy that component from Hudson Bay. I really would appreciate anything you can do to make sure the costs analysis shows that concerned about outsourcing THINGAMAJIG. I have a son-in-law and a nephew, not to mention a member of our bowling team, who work on THINGAMAJIG. They could lose their jobs if we buy that component from Hudson Bay. I really would appreciate anything you can do to make sure the costs analysis shows that we should continue making THINGAMAJIG. Corporate is not aware of materials cost increases and maybe you can leave out some of those fixed costs. I just think we should continue making THINGAMAJIG Required: (Use MS Excel and Word only for answers do not use the text box.) 1. Prepare a relevant cost analysis that shows whether the Huron Division should make THINGAMAJIG or purchase it from Hudson Bay fo 2019 Specifically, (a) What is the relevant cost per unit to make and the relevant cost per unit to buy externally? (Round both answers to 2 decimal ple ces). (b) What is the total difference in relevant costs between the two alternatives, assuming a volume of 30,000 units? (Round answert the nearest whole number) 2. Identify and briefly discuss the strategic factors that Huron should consider in this decision 3. By referring to the specific ethical standards for management accountants outlined in Chapter 1, assess the ethical issues in John Portert vest of Lynn Hardt The Huron Division of the Great Lakes Corporation manufactures subassemblies used in Great Lakes's final products. Lynn Hardt of Huron's profit planning department has been assigned the task of determing whether Huron should continue to manufacture a subassembly component, THINGAMAJIG, or purchase it from Hudson Bay Company, an outside supplier. Hudson Bay has submitted a bid to manufacture and supply the 30,000 units of THINGAMAJIG Great Lakes will need for 2019 at a per-unit price of $20.00. Hudson Bay has assured Great Lakes that the units will be delivered according to Great Lakes's production specifications and needs. The contract price of $20.00 is applcable only in 2019, but Hudson Bay is interested into a long-term arrangement beyond 2019. Lynn has submitted the following information regarding Huron's cost to manufacture 25,000 units of THINGAMAJIG in 2018: Direct materials $168,750 Direct labour 100,000 Factory space rental 150,000 Equipment leasing costs 45,000 Other manufacturing costs 250,000 Total Manufacturing costs $ 713,750 . Lynn has collected the following information related to manufacturing THINGAMAJIG Equipment leasing costs represent special equipment used to manufacture THINGAMAJIG. Huron con terminate this lease by paying the valent of 1 month's lease payment for each of the 2 years left on its lease agreement. Forty percent of the other manufacturing overhead is considered variable. Variable overhead changes with the number of units produced this rate per unit is not expected to change in 2019. The fixed manufacturing overhead costs are not expected to change in total) whether Huron manuures or purchases THINGAMAJIG. Huron can use equipment other than the leased equipment in its other manufacturing operations Direct materials cost used in the production of THINGAMAJIG is expected to increase 7% in 2019. . Huron's direct labour contract calls for a 4% wage increase in 2019. The facilities used to manufacture THINGAMAJIG are rented under a month-to-month rental agreement. Huron would have no need for thisce if it does not manufacture THINGAMAJIG. Thus, Huron can withdraw from the rental agreement without any penalty John Porter. Huron's divisional manager, stopped by Lynn's office to voice his opinion regarding outsourcing of THINGAMAJIG. He commented, "la really concerned about outsourcing THINGAMAJIG. I have a son-in-law and onephew, not to mention a member of our bowling team, who work on THING AMAJIG They could lose their jobs if we buy that component from Hudson Bay. I really would appreciate anything you can do to make sure the costs analysis shows that concerned about outsourcing THINGAMAJIG. I have a son-in-law and a nephew, not to mention a member of our bowling team, who work on THINGAMAJIG. They could lose their jobs if we buy that component from Hudson Bay. I really would appreciate anything you can do to make sure the costs analysis shows that we should continue making THINGAMAJIG. Corporate is not aware of materials cost increases and maybe you can leave out some of those fixed costs. I just think we should continue making THINGAMAJIG Required: (Use MS Excel and Word only for answers do not use the text box.) 1. Prepare a relevant cost analysis that shows whether the Huron Division should make THINGAMAJIG or purchase it from Hudson Bay fo 2019 Specifically, (a) What is the relevant cost per unit to make and the relevant cost per unit to buy externally? (Round both answers to 2 decimal ple ces). (b) What is the total difference in relevant costs between the two alternatives, assuming a volume of 30,000 units? (Round answert the nearest whole number) 2. Identify and briefly discuss the strategic factors that Huron should consider in this decision 3. By referring to the specific ethical standards for management accountants outlined in Chapter 1, assess the ethical issues in John Portert vest of Lynn Hardt