Make or Buy Smith Corporation currently manufactures a subassembly for its main product. The costs per uhit are as follows: Direct materials Direct labor Variable overhead Fixed overhead S 1 10 Total $24 Funkhouser Company has contacted Smith with an offer to sell it 5,000 of the subassemblies for 520 each. I Funkhouser makes the subassemblies, $5 of the fixed overhead per unit will be allocatcd to other products. Required: a. Should Smith make or buy the subassemblies? Explain your answer. What would be the impact on Net Income? (Make table) What if Smith could rent the space currently used to manufacture the subassemblies for $15,000. What should they do now? What is the impact on Net Income? (Make table) b. c. What other factors should Smith consider in making this decision