Make or Buy 1. XO Ltd, makes and sells state-of-the-art electronics products. One of its departments produces an expensive computer. The company's management accountant recently prepared the following cost statement of the annual production expenses associated with the department: Direct Materials Costs Direct Labour Costs Manufacturing Variable Overheads Manufacturing Fixed Overheads Total Costs (5.000 x $20.00) (5.000 x $10.00) (5.000 x $1.00) S 100.000 50.000 5.000 10.000 195.000 XO Ltd. has an opportunity to buy the 5.000 calculators it currently makes from a reliable company for $32 each. The product meets Xo Ltd's quality standards. Xo Ltd cannot avoid 75% of the Manufacturing Fixed Overheads if the computers are purchased Required: Should Xo Ltd. Buy or Make the calculators? Support your answer with appropriate computations