Answer all questions in Microsoft Word/Excel and submit the answers (with detailed working)

Electroexperts Inc. has received a special marketing choice from one of the world's electronic suppliers. The suppliers want to sell Electroexperts Inc. a certain electronic component for $18 per unit. Electroexperts Inc. makes the part, and its management is considering the buying choice seriously.

Unit manufactured $5,000

Direct materials cost $30,000

Direct labor cost $40,000

Fixed costs $20,000

Variable costs of $10,000

a)If Electroexperts Inc. buys the part, its fixed costs will reduce by 5% and the variable costs will be scrapped off. Perform incremental analysis and determine whether Electroexperts Inc. should buy the part or continue making the part?