1. Kirkland Company manufactures a part for use in its production. When 10,000 units are produced, the costs per unit are: $1.20 6.00 Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total 2.40 3.20 $12.80 Mike Company has offered to sell to Kirkland Company 10,000 units of the part for $13.00 per unit. The plant facilities could be used to manufacture another item at a savings of $20,000 if Kirkland accepts the offer. In addition, S2.00 per unit of fixed manufacturing support on the original item would be eliminated. Required: 20 points a) Should Kirkland Company buys parts from Mike Company? Explain your answer. b) What amount of savings from the plant facilities makes buying and outsourcing options equal