Use the following information to answer questions 1 and 2: Donald's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1.000 units are as follows: Direct materials $ 20.000 Direct labor 5,000 Variable overhead costs 15,000 Fixed overhead costs 10,000 Total costs $50.000 Of the fixed overhead costs, $1,000 is avoidable. 1. Donald's Engine Company has the option of purchasing the part from an outside supplier at $42.50 per unit. Should Donald continue to make the part in house? How much is the impact on income? (show computations) 2. Assuming no other use of their facilities, the highest price that Donald should be willing to pay for 1,000 units of the part is