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100,000 units per year of the B345 gasket are manufactured for use in a final...

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Accounting

100,000 units per year of the B345 gasket are manufactured for use in a final product. Data concerning the associated unit production costs follow:An outside supplier has offered to provide all of the B345 gaskets it requires resulting in a 25% reduction of fixed manufacturing overhead costs;assume that direct labor is a variable costa. Assuming no alternative use for the facilities presently devoted to production of the B345 gaskets. If the outside supplier offers to sell the gaskets for $0.46 each, should Kirsten Corporation accept the offer?b. Assuming the facilities presently devoted to production of the B345 gaskets could be used to expand production of another product that would yield an additional contribution margin of $10,000 annually. What is the maximum price Kirsten Corporation should be willing to pay the outside supplier for B345 gaskets?
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