1 Make vs. Buy XYZ Company manufactures 10,000 special gears for use in its annual production activities. The following costs are reported: Direct materials Direct labor Variable Factory Overhead Fixed Factory Overhead $3 / gear $4/ gear $4.50 / gear $70.000 Parts Plus has offered to sell XYZ 10,000 of these gears for $17 per unit. If XYZ accepts the offer, $40,000 of the fixed factory overhead to special gears would be totally eliminated. What would be the effect on XYZ's income of accepting Parts Plus's offer (Should XYZ make or buy the parts)? Show the cost to make the gears and the cost to buy the gears