When you completed your audit of the Groot Company, management asked for your assistance in deciding whether to continue manufacturing a part or to buy it from an outside supplier. The part, which is named Katels, is a component used in some of the finished products of the company. From your audit working papers and from further investigation, you develop the following data as being typical of the company's operations: - The annual requirement for Katels is 6,000 units. The lowest quotation from a supplier was $8 per unit. - Katels have been manufactured in the precision machinery department. If Katels are purchased from an outside supplier, certain machinery will be sold and would realize its net book value. - The following precision machinery department costs apply to the manufacture of Katels: direct materials, \$15,000; direct labour, \$27,000; indirect labour, \$7,000; power, \$300; other $500. The sale of the equipment used for Katelss would reduce the following costs by the amounts indicated: depreciation, $2,500; property taxes and insurance, $1,000. - The following additional precision machinery department costs would be incurred if Katels were purchased from an outside supplier: freight $0.55 per unit; and, indirect labour for receiving, materials handling, and inspection $3,500. The cost of the purchased Katels would be considered a precision machinery department cost. Required: a. Prepare a schedule comparing the total costs of the precision machinery department (1) when Katels are made, and (2) when Katels are bought from an outsider supplier. (15 marks) b. Discuss the QUANTITATIVE \& QUALITATIVE considerations you would bring to the attention of managers in assisting them in deciding whether to make or buy Katels. Include in your discussion considerations that might be applied to the evaluation of the outside supplier. (5 marks) Kanata Construction specializes in large projects in Edmonton and Saskatoon. In 2017 , Kanata invested $1.5 million in new excavating equipment, which qualifies for a CCA rate of 50%. At the same time the firm sold some older equipment on the secondhand market for $160,000. When it was purchased in 2014 , the older equipment cost $400,000. Calculate the UCC for the asset pool in each year from 2014 through 2018. (Round the finol answers to 2 decimal places, Omit $ sign in your response.)