Mitchell Company needs 10 000 units of a certain part to be used in its production cycle. The following are the unit costs which would be incurred in making the part:

Direct materials $6.00 Direct labour 24.00 Variable overhead 12.00 Fixed overhead allocated 15.00 57.00 Supplica Company would sell Mitchell an equivalent part for $53.00 per unit. If Mitchell buys the part from Supplica Mitchell could not use the released facilities in another manufacturing activity. Sixty percent of the fixed overhead allocated will continue regardless of what decision is made. Required: (a) Should Mitchell make or buy the part? (b) What is the financial advantage or disadvantage in making it?