Acader Using the table below prepare the Make or Buy Analysis using the following assumptions: 1. Only the Lightbar is going to be outsourced, the Ram bar is still being produced. The Ram bar still uses 40% of the overhead costs. 2. The special Equipment is being used in multiple product lines for electronics for emergency vehicles. 3. The $1,912 is based on the installation on 1,500 emergency vehicles. 4. The outside supplier has offered to provide 1,500 lightbar systems for a cost of $1,250 per system. Product Costing: Light Bar System and Ram Bar - Making vs Buy Cost Cost of 1,500 per Make Buy Unit Outside Purchase Price $1,250 Direct Materials (Ram Bar) $360 Direct Materials (Light Bar $550 System) Direct Labour (Ram Bar) $250 Direct Labour (Light Bar $650 System) Variable Overhead $7 Installer's Salary $20 Depreciation of Special $50 Equipment Supervisor's Salary $5 General Factory Overhead $20 Unit Product Cost $1,912 Total Avoidable Cost: Cost of Buying the Part: Should Vertous Ltd make or buy the Lightbars