Q.2 Toronto Auto Co [VACOl, has a parts division that needs 1,000 units of component CX12 per period in making car parts. It ean buy the component for S1,250 each or make them under the following eircumstancess Per Onit Direct materials Direct manufacturing labour Variable manufacturing overhead Fired manufacturing overhead Total $500 250 2003501390 If A Ca buys the components, it can save 55% of fired mannfacturing overhend. 1. Show caleulations to prove whether TACeshould make or buy the component. Alternatively, ifTACo were to manufacture the part in-house, it can use extra capacity to supply another company that uses the same component. What cost information should be used for pricing the ertra units? Requireds 2. List additional non-financial factors the company should use in deciding wher ther to make or buy the component. 3. What are the potential dangers of ontsoureing? [11 marks]