Kando Company currently pays $7 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $3 for direct materials, $2 for direct labor, and $1 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost.

(a) Prepare a make or buy analysis of costs for this part. 

(b) Should Kando make or buy the part?