Transpo Trucking The company operates a number of trucks with a transmission that is no longer available on the market and the company must either rebuild the transmissions themselves or purchase a remanufactured one from an external supplier Remanco. Remanco can provide a delivered remanufactured transmission with a 5-year warranty for $3,000. The maintenance department rebuilds transmissions. The company is required to rebuild 10 transmissions per year to replace those that fail. Transpo maintenance's costs to rebuild a transmission are as follows: Transmission Rebuild Information Direct Materials Direct Labour $ Costs 1,350 per transmission 20.0 Hours per transmission 45.00 per labour hour 50% x Direct Labour costs $ Variable overhead rate Required: 1. Based on the above information, should the company rebuild the required 10 transmissions annually or buy remanufactured transmissions from Remanco? 2. Additional information is discovered. The company is carrying and handling $10,000 in parts and supplies just for rebuilding transmissions. Assume the company applies an internal interest charge for inventory carrying value of 5% annually. Including this cost, does the decision from Requirement 1 change? 3. In addition to the inventory cost from Requirement 2, analysis shows that on average each year one rebuilt transmission fails prematurely and has to replaced. This requires the full cost of rebuilding one additional transmission each year. Including this cost, does the decision from Requirement 2 change