Company AA, a manufacturer of cars, is operating at 75% of plant capacity. Co.AA's plant manager is considering making the headlights now being purchased from an outside supplier for $14.40 each. Co.AA's plant has idle equipment that could be used to manufacture the headlights. The design engineer estimates that each headlight requires $4.85 of direct materials, $3.85 of direct labor, and $6.85 of manufacturing overhead. Forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. A decision by Company AA to manufacture the headlights should result in a net gain (loss) for each headlight of: $2.96. $1.59. $3.64. $(1.15). 5:48 PM