8. Make-or-buy decision. Buck Company manufactures Part 1700 for use in its assembly opera- tion. Costs per unit for 5,000 units of Part 1700 are: Variable factory overhead.. Fixed factory overhead.... Total unit cost. 7 Hollow Company has offered to sell Buck 5,000 units of Part 1700 for $27 each. If Buck ac- cepts, some of the facilities presently used to manufacture Part 1700 could be used to help with the manufacture of Part 1211, thus saving $40,000 in relevant cost in its manufacture and eliminat- ing $3 per unit of the fixed factory overhead applied to Part 1700. Required: Make-or-buy decision analysis. (AICPA adapted)