A company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data: Option A:Purchase 10,000 items per year at a fixed price of $8.03 per item. The cost of placing the order is negligible according to the present cost accounting procedure. Option B: Manufacture 10,000 items per year, using available capacity in the factory. Cost estimates are direct materials=$5.05 per item and direct labor=$1.35 per item. Manufacturing overhead is allocated at 200% of direct labor (=$2.70 per item). Based on these data, should the item be purchased or manufactured? The total cost of Option A is $ (Round to the nearest dollar.) The total cost of Option B is $ (Round to the nearest dollar.) Should the item be purchased or manufactured? Choose the correct answer below. 1- The item should be purchased. 2- The item should be manufactured