Brady Company had the following results for one of the twenty-four components of their product last year: Number of Components Produced Product costs in TOTAL for this component Direct materials costs Direct labor costs Variable factory overhead costs Fixed factory overhead costs 2,600 parts $104,000 85,800 11,700 78,000 Brady is considering purchasing this component from another manufacturer. They have received an offer to buy the component for $90 per unit. a. b. C. d. e. Assuming that the fixed overhead is made up of insurance and depreciation on the factory building, should Brady continue to make the component or buy the component from the other manufacturer? Show AND LABEL your work. What is the highest price Brady should be willing to pay for this component? Assume the fixed overhead is made up of: 1. 23 4. The $45,000 salary of the supervisor of the department where the component is made 75 moves of material which cost $30 per move Allocation of engineering costs in designing the product and the machines to make the component. The engineers spent approximately 100 hours on the design and are paid $80 per hour. The engineers design all of the components for the products which Brady manufactures. The remaining fixed overhead is insurance and depreciation on the factory building. With these assumptions, should Brady continue to make the component or buy the component from the other manufacturer? Show AND LABEL your work. Based upon the information in part "c.," at what number of components would the make decision have the same total cost as the buy decision (i.e. what is the "point of indifference")? Name one other factor not listed in this problem which Brady should consider before making the final decision to purchase this component or continue to make it themselves.