Problem 4/20 points) Delta Company is trying to decide whether to continue manufacturing a part or to buy it form an outside supplier. The part, called CW, is a component of the company's finished product The following information was collected from the accounting records and production data for the year-ending December 31. 2020: 1) 7.000 units of CW are produced in the Machining Department 2) Variable manufacturing costs applicable to the production of each CW unit are: Direct Materials S4.50. Direct Labour $430, Indirect Labour S0.50 and Utilities $0.40. 3) Fixed manufacturing costs applicable to the product WISCO are: Alected Artis 1 600 Property. The Cestem Direct 5 900 $60 200 Insurance 900 5 3.000 Total S 1.700 4) All variable manufacturing costs and direct fixed costs will be eliminated if CW is purchased from an outside supplier. Allocated costs will have to be absorbed by other production departments. The lowest quotation for 7,000 CW units from a supplier is $70,000 5) If CW units are externally purchased, freight and inspection costs would be $0,30 per unit, and receiving costs totaling S750 per year would be incurred by the Machining Department a) Based on the above information, should Delta Company make or buy CW? What would be the change in Operating Income resulting from a 'buy' decision? Show calculations for full marks. (10 points) b) Would the decision be different if Delta Company has the opportunity to produce $4,000 of net income with the facilities currently being used to manufacture CW? Show calculations for full marks. (10 points)