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

Direct materials 20,000 2.00

Direct labor 25,000 2.50

Variable overhead 15,000 1.50

Fixed overhead (avoidable) 24000 2.40

Fixed overhead (no-avoidable) 26,000 2.60

Purchase cost 61,000 $6.10

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