Make or Buy Decisions. Make or buy is always an important decision for your company. Though your company has the capacity, sometimes it may be less expensive to purchase directly from another wholesaler. The visualization in this exercise shows the cost difference between make versus buy. Based on this information, please answer the following questions. I By looking at the visualization, you notice that purchase cost is positive but everything else is negative. Which of the following statements best describes this observation? This is incorrect. The visualization must erroneously flip the signs. We use different signs to show whether it is paid internally or it is paid through external parties. When we compare all the costs under both conditions (make versus buy), these numbers are the differences. The positive value indicates the expenses we pay and the negative values represent the expenses we can save when buying the product. We use negative value to show an expenditure, which is the reason why the manufacturing expenses are negative. By hovering over the figure, what is the total manufacturing costs if we decide to make the product by ourselves assuming no other costs are involved in this manufacturing process? $80,000$100,000$120,000$170,000 Based on the visualization, would you choose to make the product or choose to purchase the product? Make since the cost is negative. Purchase as we can skip the manufacturing process. Purchase since it is less expensive. Make as it is cheaper to make it by ourselves