Make or Buy

includes fixed costs equal to $75\%$ of the variable costs involved.

a$.$ Should Harper buy the component if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis.

Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.

b$.$ What would be your answer to requirement $($a$)$ if the released capacity could be used in a project that would generate $$5,000$ of contribution margin?

Use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.