Cost $($per unit$)$ Material $`$Rs$.50,$ Labour Rs $`25,$ Direct Expenses Rs $15,$ Fixed Ex$-$

pense Rs $10,$ Profit Rs $20,$ Selling Price Rs$.120.$ The production capacity of the

factory is $10,000$ units. At present, a supplier has offered to sell the same item

for $95$ Should the company produce the Item or buy it from the suppler? Give

reasons.