Zoney Products produces both a standard and a deluxe model TV. Selected data relatod to each product is as follows Sales prce Direct material Direct labor Variable Overhead Standard S 725.00 325.00 Deluxe $935.00 400 00 210.00 125.00 20000 75.00 uning hours Demand 3,000 3,000 TV tuning is performed on one of four expensive tuning machines that can operate a maximum of 3,000 tuning hours per year. a) How much of each type of TV should be produced? b) What is the maximum total contribution margin? Kites Unlimited uses 50,000 plastic inserts annually to complete their kites. They can be purchased externally for $0.25. Current per unit production costs for the inserts are: Direct material$.03 Direct labor Variable Overhead.15 Fixed Overhead$10,000 .05 a) Should the inserts be made internally or purchased extermally? What is the difference in net income? (Note which is more favorable.) b) Suppose that one-half of the fixed costs incurred by Kites Unlimited could be eliminated if the company outsources the inserts. Should the inserts be made internally or purchased externally? What is the difference in net income? (Note which is more favorable.)