PA7-2 Analyzing Make-or-Buy Decision [LO 7-2,7-4 Direct 1.50 10.50 overheacd Total cost per unit ed that all costs could be eliminated by outsourcing the tote bags, while 60 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. 1. Compute the difference in cost between making and buying the umbrella tote bag Buy