Assume the following cost data relate to the decision to produce

Total units expected to be produced or bought from the market

10,000

Total Costs

Unit Cost

Rental of equipment

$12,000

$1.20

Equip. depreciation

2,000

$0.20

Direct materials

9,000

0.90

Direct labor

15,000

1.50

Variable overhead

6,000

0.60

Fixed overhead (non-avoidable)

24000

2.40

Total

$68,000

$6.80

Purchase cost

40,000

$4.0

Should the company acquire the product form the market?

a.Yes

b.No

c.Indifferent to to make or to buy

d.Yes if the market price per unit less than $4.50