Harvester Corporation manufactures gears used in several of their farm equipment products. Annual production volume of these gears is 20,000 units. The yearly fixed costs that cannot be eliminated by outsourcing are $300,000. Unit costs for the gears are as follows: Direct material costs $55 Direct labor costs $30 Variable indirect costs $25 Total costs $110 Alternatively, Harvester can purchase the gear from American Foundries for $120 per unit. Scenario 5.2 Assume the same facts as above and suppose additionally that if the gear is outsourced, Harvester will rent the facility to another corporation for $300,000. Should Harvester make or buy the gear? What is the total dollar amount saved or lost if Harvester outsources the gear? Make, $100,000 Make, $120,000 Buy, $100,000 Buy, $120,000