6. Make or buy decision. The Marikina Shoe Company manufactures shoes for sports and recreational use. Several types of shoes require a built-in air pump. Presently, the company makes all the air pumps it requires for production. However, management is evaluating an offer from Binan Air Supply to provide air pumps at a cost of P60 each. Marikina Shoe Company management has estimated that the variable production cost of the air pump are P50 per unit. The firm also estimates that it could avoid P400,000 per year in fixed costs if it purchased rather than produced the air pumps. Required: 1 If Marikina Shoe Company requires 50,000 pumps per year, should it make or buy the pumps from Binan Air Supply? 2. If Marikina Shoe Company requires 35,000 pumps per year, should it make or buy the pumps from Binan Air Supply? 3. Assuming all other factors are equal, at what level of production would the company be indifferent between making and buying the pumps? - same ( 4. If Marikina Shoe Company wants to save P4, how much should it he willing to pay on external supplier to buy the air pump