Q.1 A product manufacturing company is deciding between manufacturing a part in-house that costs $26 per unit, including direct cost, fixed overheads, and variable overheads, as given in the table below. Cost Head Cost per Unit ($) Direct Cost 15 Fixed Overhead 4 Variable Overhead 7 Total Cost 26 The same part is available in the market at $23 per unit, including the cost of buying, shipping, and warehousing, as shown in the table below. Cost Head Cost Per Unit ($) Cost of Part 20 Shipping & ware housing cost 3 Total Cost 23 Based on this data, is it economical for the company to go for buying the product from market or manufacturing in house? (6 marks)