P$3.($make or buy$)$ Coyote Company incurs the following costs in producing $10,000$ covers.

Direct material costs

$$20,000$

If Coyote buys them, the purchasing cost would be $$\frac{12}{?}$ unit, and Coyote has to assume

$$26,000$ of fixed manufacturing overhead.

Instruction$)$ Prepare an analysis showing Coyote should make or buy the covers. And

provide a recommendation.