Innovative Automation Corporation is currently manufacturing a part that goes into its main product. Each year 5,000 of these parts are used. Cost data for the past year that relates to the 5,000 parts are given below. Fixed costs are allocated on the basis of direct labor hours. An outside company has offered to supply the part for $48.00 per unit, plus a shipping charge of $5.00 per unit. The plant now used by Innovative Automation Corporation to manufacture the part would not be used to capacity within the foreseeable future if the part is purchased outside.

Variable costs:
Direct materials	$	150,000
Direct labor		100,000
Variable overhead costs		10,000
Fixed overhead costs		25,000

Prepare an analysis comparing the unit cost of manufacturing the part with the unit cost of purchasing it. (Round final answers to two decimal places. Enter all values as positive value.)

INNOVATIVE AUTOMATION CORPORATION
Analysis of Effects of Making or Buying a Part
Cost to purchase:
Total unit cost to purchase			$0.00
Cost to make the part:
Total unit cost to make the part			$0.00
Differential cost savings if manufactured			$0.00