EXERCISE 1 Taylor S.p.A. produces in a specialized department a component (annual volume: 2000 units); costs of the company are summarized below: Profit and Loss Statement (costs section) Raw materials (referred to purchased volume of 60.000 2.000 units) Direct labor (referred to activity of 1.500 units) 75.000 Depreciation (machinery) 20.000 Security and Insurance of industrial plant 15.000 Machinery power (only fixed fee) 18.000 General overhead costs 50.000 An external supplier offers the same component at a unitary price equals to 110 . Knowing that: Machineries are transferable to third parties at 100.000, with a capital gain of Determine whether Taylor S.p.A. has economic convenience or not in accepting the supplier offer and calculate the advantage. For Taylor S.p.A. it is more convenient to OMAKE OBUY which gives the firm an advantage of