CLICK HERE TID KAVH YOUR WORK QUESTION 2-MAKE VRY (15 mars 2 Konrade Engine Company (KBO matures par TE456sed in several of its engine modele Monthly production con for 5.000 mits are se follows: 9 10 Direct materiale 390.00 Direct labour 45 000 Variable overhead posts 55.0 Fixed overhead costs 100,000 Total costs $290.000 11 Unit cost $58.00 12 J KEC has the option of purchasing the part from an outside supplier at 550 per unit. 14 It is estimated that 20% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TB456 from the outside supplier 15 It has also been determined that some space freed up in the manufacturing area could be rented out to outsiders for storage at an annual fee of $30.56%). 16 7 Required: 1. Qualitative factors aside, at the 5,000 budgeted level of production, what should KEC do make the part itself or buy it from the supplier? What is the impact on the company's net income? (Show your detailed analysis and decision). (8 marks) a 26 27 28 30 10 31 32 33 34 352. At what level of production volume would KEC be indifferent between making the part itself or buying it from the foreign supplier? 36 87 8 . 3. Over what range of production would the company be better off buying the part itself? Explain your decision. (1 Mark) List two qualitative factors to be considered in a make/buy decision and comment. ( 2 marks) Question New