2. Make or Buy Vaughan Company is now making a small part that is used in one of its products. The company's accounting department reports the following costs of producing the part internally: DM DL VFOH 3 FFOH (direct) $ FFOH (allocated) $ 1 15 A total of 50% direct FFOH consists of unavoidable costs, while the other 50% consists of supervisory salaries that could be avoided if the production is discontinued. An outside supplier had offered to sel the parts to Vaughan Company for $12.50 each, based on an order of 10,000 units per year. Assuming Vaughan only needs 10,000 units a year, should Vaughan accep part in the space currently used to produce the par t this order or continue to make the ternally? Assume DL is a variable cost. Further assume that if Vaughan purchases the part, a vear