Production numbers are the number of the units

A manufacturing company produces four different types of raw materials: A, B, C, and D. The costs of producing these raw materials are expected to be as follows: A B C D Production {units} 2,000 4,000 3,000 6,000 Total Variable cost: Direct Material $16,000 $40,000 $32,000 $43,000 Direct Labour $32,000 $79,000 $54,000 $2,000 Variable Production Overhead $8,000 $24,000 516,000 $24,000 Directly attributable fixed costs per annum are as follows: Incurred as a direct consequence of making A $2,000 Incurred as a direct consequence of making B 510,000 Incurred as a direct consequence of making C $12,000 Incurred as a direct consequence of making D $16,000 Other committed xed costs $60,000 A subcontractor who is fairly new to the market agreed to supply the same raw materials of A, B, C, and D for $24, $42, 520, and 528, respectively. Required: a) Determine whether the manufacturing company should make or buy the components {show the working for each component}. Justify your answer. (4 marks} b} Discuss the other factors that the manufacturing company should consider in making the decision in part [a]. [5 marks]