The relevant costs for decision making

(sorry for the cross line on the question, thanks for answer)

QUESTION 1 Relevant Costs for Decision Making and Standard Costing (25 marks) Relevant Costs for Decision Making (12 marks) Mountain Bikes Limited produces heavy duty gear shifters which are used in most popular line of mountain in bikes. The company's accounting department reports the following costs of Producing 8000 units of the shifter internally each year: An outside supplier has offered to sell 8,000 shifters a year to Mountain Bikes at a price of only $19 each. Required: 1. Calculate the total relevant costs of producing the shifter internally and purchasing it from outside. (6 marks) 2. Explain whether Mountain Bikes Limited should stop producing shifters internally and start purchasing them from outside supplier? (3marks) 3. Explain the difference between a sunk cost and an incremental cost. Give an example to support your