IV. Short-Term Decisions Hill Fabricators manufactures a variety of parts that the company can use to produce metal fixtures. The M2 its manufacturing 11%of its fixed part is a popular universal part used in the production of several other parts at facility in Ohio. At a recent meeting, the managerial accountant reported that oe the production of the M2 part at $50 per unit to its competitor, Mason e managerial accountant at Hill Fabricators presented the following data that overhead costs assigned to the M2 part will not continue if Hill Fabricators decides to outsource Manufacturing. T represents the cost to produce 1,100 units of the M2 part in-house: Hill Fabricators Montlhly Analysis: Part M2 Direct materials Direct labor Variable overhead costs $30,000 $4,000 $16,000 $12,000 Fixed overhead costs Required Prepare an incremental analysis to determine whether Hill should make or continuc to buy the M2 part. Should they make or buy the part? a. b. If Hill outsources the production of part M2, management expects to be able to rent out the unused capacity of its factory for $8,000 per month. Does this change your answer to part (a)? Support your answer with calculations. c. Identify one qualitative factors that Hill should consider in making this decision