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QUESTION 1 Security Component Berhad (SCB) produces a component KC2, used for alarm devices. The cost of producing 10,000 KC2 units is as follows: Cost per unit RM 4 Direct raw materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead 10 8 9 Total RM 31 Firma Lok (FL) has offered to supply 10,000 units of KC2 components for RM30. If SCB accepts this offer, factory facilities and equipment can be used to manufacture other components with cost saving of RM45,000. In addition, a fixed manufacturing overhead cost of RM5 per unit is also avoided. Required: a. Calculate the relevant unit cost of KC2 components. (2 marks) b. Indicate the best alternative for SCB whether or not SCB should accepts the offer from FL by pointing out the difference between making or buying the components from FL. (Show proof in form of calculation) (8 marks)