1. A manger is trying to decide whether to purchase a certain part or to have it produced internally. Currently, there are no costs associated with this part because it is purchased from an outside vendor at a cost of $14.00 per part. One method would require the purchase of equipment resulting in fixed costs of $400,000 and variable costs per part of $7.00 per part. A second method would require equipment with fixed costs of $480,000 and variable costs of $6.00 per part. Compare the current costs against the two alternative methods, and make recommendations based on your analysis.