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M7-8 Analyzing Make-or-Buy decision (LO 7-2.7-4) Blowing Sand Company also has the Blast fan model. It is the company's top-selling model with sales of 30,000

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M7-8 Analyzing Make-or-Buy decision (LO 7-2.7-4) Blowing Sand Company also has the Blast fan model. It is the company's top-selling model with sales of 30,000 units per year. This model has a dual fan as well as a thermostat component that causes the tanto cycle on and of depending on the room temperature, Blowing Sand has always manufactured the thermostat component but is considering buying the part from a supplier It costs Blowing Sand $5 to make each thermostat ($2.50 variable and $2.50 fixed). Flurry Co has offered to sell the component to Blowing Sand for 54. Blowing Sand's decision to purchase the part from Flurry wouli eliminate all variable costs but none of the food costs Blowing Sand has no other possible uses for the area currently dedicated to the thermostat production Calculate the effect on Blowing Sand total costs if the thermostat is purchased from Flurry Co. The Total Cost

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