3. Assume that Pitch Corp. will continue to produce and sell at a volume of 88,000 units during 2017. This volume utilizes 85% of the Company's production capacity In January 2017, the production manager received an offer from a vendor to provide a component used in the production of Pitch Corp.'s product. Each unit produced by Pitch Corp. requires two components. The vendor would supply the 176,000 components needed for the planned product at a delivered cost of $5.25 per unit. Pitch Corp. would incur an additional cost of $0.25 per component to prepare them from inclusion in their final product. Cost data relative to the production of 176,000 components by Pitch Corp. reveals: Direct Materials Direct Labor Variable Overhead Fixed Overhead $3.60 per unit $0.95 per unit $0.35 per unit $1.00 per unit The production manager estimates that Pitch Corp. could eliminate $105,000 of the fixed costs allocated to the component if it outsourced its production of the vendor. The Company could use the freed-up capacity to produce $25,000 of additional contribution margin from another product. a. Analyze the decision by identifying the relevant costs. Present the relevant costs and their total amounts in the table below. You will not use all of the lines for at least one of the alternatives. (8 points) Make Alternative: 176,0cc0 e Buy Altermative: 176,000 Total Cost to Make Total Cost to Buy b. From a profitability perspective, should Pitch Corp. make or buy the component? Briefly explain. (2 points)