Produce or buy an item (Value: 15 points) The company BB Inc. manufactures a piece X for its annual production. The following table presents information on production costs at a certain level.

Production level-30,000 units

Direct materials -$ 7.20

Direct labor -$ 10.50

Variable manufacturing indirect costs -$4.80

Fixed indirect manufacturing costs-$15.00

Total costs per unit- $ 37.50

BB Inc. received an offer to buy 30,000 units of the piece already manufactured for $ 35.25 per unit. There are fixed hints of $ 9 per unit that would be maintained even if they were purchased. However, buying the piece would allow BB Inc. to rent the production area for $ 200,000 annually.

Required: Prepare a report comparing both alternatives and reflect how much the profit would increase or decrease if you decide to buy the piece. You must include all the computations made.