4. Make or Buy Decision A company manufactures a wide range of electrical products, one of which is a transistor, with a variable cost of 15 per unit and a selling price of 20 per unit. In each period 8,000 units are made and sold. Fixed costs are 25,000. Another company who manufactures the same transistor has offered to supply all of them at a cost of 18 per unit.

Determine whether the company should make or buy the transistors. Also include any non-financial factors that would be relevant to a final decision.