company produces component A which is used in its normal production. During the coming period, the company is considering whether or continue the manufacturing of the component or buy it from external source. Manufacturing of the component is in batches of 10,000. The boughtin-price quotation received from the external supplier is GH8.5 per component. The marginal cost of producing the component is GH6.75 per unit of the component which will be produced on a machine currently working at full capacity. If the product is to be manufactured on the machine, it is estimated that, the sales of the finished product produced by the company will be reduced by 500 units for every half batch of the component manufactured. The finished product is currently sold at GH100 per unit with a total cost of GH75 per unit in which GH15 per unit represent a fixed cost. Advise the company whether the component should be manufactured internally or purchased from the external supplier