Lopez Company manufactures various types of health food products. Management is evaluating an offer from Packaging Inc. to provide all packaging for a line of products at a cost of \(\$ 2.80\) each. Lopez's management has estimated the variable production costs of the packaging to be \(\$ 2.10\) per unit and that the company could avoid \(\$ 31,000\) per year in fixed costs if it purchased rather than produced the packaging. Unavoidable fixed costs total \(\$ 40,000\).

a. If 28,000 units require packaging per year, should Lopez Company make them or buy them from

b. If 50,000 units require packaging per year, should Lopez Company make them or buy them from the supplier?