McRoberts Inc., produces salon supplies and has of many sectors. Sector 1 is considering purchasing materials outside of McRoberts Inc. since Sector 2 intends to raise its selling price for the same materials to $200. Information for Sector 1 and Sector 2 are as follows: $ Outside price for materials Sector 1's annual purchases Sector 2's variable costs per unit Sector 2's fixed costs, per year 150 10,000 units 140 1,250,000 $ $ Required: a) Will McRoberts Inc. benefit if Sector 1 buys materials outside of the company? What should Sector 1 do? Sector 2 cannot sell its materials to outside buyers. (4 marks) b) Assume that Sector 2 can save $200,000 in fixed costs if it does not manufacture the material for Sector 1. Should Sector 1 purchase from the outside market? (2 marks) c) Assume the situation in requirement a) If the outside market value for the materials drops $20, should Sector 1 buy from the outside? (4 marks)