2- A radio manufacturing Co find its cost 6.25$ to make 20000 components R/518, the same is available in the market at 5.75$ each with an assurance of continue supply. The manufacturing cost summary is:

Materials: 2.75$ each

Labor: 1.75$

Other variable overheads: 0.50$ each

Fixed costs: 1.25$ (250000)

A- Should you make or buy

B- what would be your decision if the supplier offered the component at 4.85$ each?