Make or buy. Towson, Inc., produces semiconductors of which part no. 200 is a subassembly. Towson, In currently produces part no. 200 in its own shop. The Baltic Company offers to supply it at a cost of S205 p 500 units. An analysis of the costs Towson incurs producing rart no.200 reveals the following information Cost per 500 Units Direct (Variable) Material Direct (Variable) Labor Other Variable Costs Fixed Costs(a) Total (a) Fixed overhead comprises largely depreciation on general-purpose equipment and factory buildings. S 70 80 20 40 $210 Required: Management of Towson, Inc., needs your advice in answering the following questions: a. Should Towson, Inc., accept the offer from Baltic if Towson's plant is operating well below capacity? b. Should the offer be accepted if Baltic reduces the price to $170 per 500 units? c. Suppose Towson can find other profitable uses for the facilities that it now uses in turning out part no. 2 How would that fact affect the price Towson is willing to pay Baltic? cuing well beo ca