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Foto Company makes 10.000 units per year of a part it uses in the products it manufactures. The anit product cost of this part is

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Foto Company makes 10.000 units per year of a part it uses in the products it manufactures. The anit product cost of this part is computed as follows An outside supplier has offered to sell the company all of these parts it needs for $4160 a unit. If the company accepts this offer the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $56.000 per year If the part were purchased from the outside supplier, all of tho direct labor cost of the part would be avoided. However, $590 of the fived manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplec This fixed manufacturing overhead cost would be applied to the company's remaining products Required: a. How much of the unit product cost of $4510 is relevant in the decision of whether to make or buy the part? (Round "Per Unit" to 2 decimal places.) b. What is the benefit (cost) of purchasing the part rather than making it? c. What is the maximum amount the company should be willing to pay an outside suppler per unit for the part if the suppler commis to supplying all 10.000 units required each year? (Round "Per Unit" to 2 decimal placesi)

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