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Please Check the below case study then answer the questions separately with citation of answers : 1- describe the circumstances of the following case study

Please Check the below case study then answer the questions separately with citation of answers :

1- describe the circumstances of the following case study and

2-recommend a course of action.

3-Explain your approach to the problem,

4-perform relevant calculations and analysis, and

5- formulate a recommendation.

6-Ensure your work and recommendation are thoroughly supported.

Case Study:

A vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units.

Description Cost per Month

Direct Materials $75,000

Direct Labor $100,000

Total $175,000

In addition, variable factory overhead is applied at $7.50 per unit. Fixed factory overhead is applied at 150% of direct labor cost per unit. The vacuums sell for $150 each. A third party has offered to make the engines for $60 per unit. 75% of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision.

7- Should the company make or buy the engines?

8- insert a detailed recommendation

9-Perform all calculations correctly.

10- Articulate the approach to solving the problem, including which financial information is relevant and not relevant.

11- Correctly conclude on whether the company should make or buy the engines.

12- Propose other factors that should be considered when making this decision and elaborate on whether or not those factors do or do not support the decision.

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