Would like some help to see if I am answering this correctly.

QUESTION 3 The Winery Company (WC) manufactures wine coolers. WC manufactures two types of coolers: Regular and Premium. The Premi thermoelectric system reduces the vibrations of the cooler, which maydisturb the delicate sediments in fine wine. WC produces the and sells 1,000 units of each. The Premium cooler requires a special machine to install the thermoelectric system, which is operat The data for the two production units is given below. WC is considering whether to rent a p per unit for 1,0 00 units (not including Regular Premium Thermo. System Raw Materials $70 $150 (includes $60 or themoelectric system) 150 Raw Materials $10 Labor 5 hrs @ $10 B he @ $10 10 Direct Labor 1 hr @ $10 Variable Overhead $4 per DLH $3 per DUH 3 Variable Overhead $8 per DLH Fred Overhead $5 per DLH $4 per DLH 4 Fixed Overhead $7 per DLH Market Price $200 $300 300 Capacity 2000 units WC would then have to ship the thern Required: 1. Should the company continue to buy the thermoelectric system from Thermo Inc.? No, they should not rent the other machine. Doing so, lowers their sales price to $280 and does not ( Estimated Demand 1000 1000 1000 Regular Premium Premium Inhouse RM/unit 70.00 $ 150.00 $110 DL/unit 50.00 80.00 $ 90.00 Variable OH/Unit 20.00 24.00 32.00 Fixed OH/Unit 25.00 32.00 $ 39.00 Secondary Rent 0 0 5 10.00 Second ary Shipping 0 5 6.00 Total Cost 165.00 $ 286.00 $ 287.00 Market Price 5 200.00 $ 300.00 300.00 IM 35.00 14.00 5 13.00 Total Profit 35,000.00 $14,000.00 $ 13,000.00 2. WCis considering renting an additional machine ($5,000 annual rent) that can install the themoelectric systemin the Premium can sell an additional 500 units, but the market price for Premium Coolers will drop to 280 per unit. Should WCrent the additional are the same. Also, answer this question without changing your answer to question 1). No, they should not rent the other machine. Doing so, lowers their sales price to $280 and does not ( $7/unit under this scenario