LMN Ltd is considering outsourcing the production of a component. The following data is provided:

Item	In-House Production ($)	Outsourced ($)
Direct materials	80,000	-
Direct labor	60,000	-
Variable manufacturing overhead	30,000	-
Fixed manufacturing overhead	40,000	-
Purchase price per unit	-	$25 per unit
Units required	10,000	10,000

Required: a. Calculate the total cost of in-house production. b. Calculate the total cost of outsourcing the production. c. Determine the cost savings or additional cost if the production is outsourced. d. Discuss the qualitative factors that should be considered in the make-or-buy decision.