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 (non-avoidable)	24000	2.40
Fixed overhead (avoidable)	26,000	2.60
Purchase cost	86,000

Should the company produce the product internally?

	a.	Yes
	b.	No
	c.	Indifferent to to make or to buy
	d.	Yes if the market price covers the fixed costs per units