) Honda Company must decide whether to make or buy some of its compo- nents for the appliances it produces. The costs of producing 176,000 electrical cords for its appliances are as follows: Direct material $90,000 Variable overhead $32,000 Fixed overhead $24,000 Direct labor $30,000 Instead of making the electrical cords at an average cost per unit of $1.00 ($176,000 176,000), the company has an opportunity to buy the cords at $0.90 per unit. If the company purchases the cords, all variable costs and one-third of the fixed costs will be eliminated. b) What if the released productive capacity will generate additional income of $5,000