1. Tushar Ltd, must decide whether to make or buy some of its components for their products. The costs of producing 166,000 mechanical components for its appliances are as follows. Direct materials $90,000 Variable overhead $32,000 Direct labor $20,000 Fixed overhead $24,000 Instead of making the mechanical component at an average cost per unit of $1.00, the company has an opportunity to buy the component at $0.90 per unit. If the company purchases the components, all variable costs and one-fourth of the fixed costs will be saved. (a) Show an incremental analysis showing whether the company should make or buy the mechanical component. (b) What will be your answer, if the released productive capacity will generate additional income of $5,000