1. Make or Buy Reno Company makes 10,000 units of widgets each year. The cost per unit for 10,000 units is: Direct Materials $15 Direct Labor $11 Variable manufacturing Overhead $ 5 Fixed manufacturing Overhead $10 Cost per unit $41 Reno can buy the units for $36 apiece. If Reno buys the parts outside then $40,000 of equipment rent (which is now included in Fixed manufacturing) can be avoided by cancelling the lease. What should they do and why? (Show calculations)