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Kindly answer with explanation. 2. Thunder company has been producing 15000 units of part 3741 for its products. The unit cost for the part is

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Kindly answer with explanation.

2. Thunder company has been producing 15000 units of part 3741 for its products. The unit cost for the part is as follows: (4 marks) Direct materials $ 7 Direct Labour 13 Variable manufacturing overhead 9 Fixed manufacturing overhead 10 Total 39 Thunder can purchase 15000 units of part 3741 for $ 34 each. If the part is purchased, Thunder can make another product and provide a contribution margin of $15000. If the part is purchased, 75% of the fixed manufacturing overhead costs will still be incurred. Required Should Thunder make or buy the part

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