Q#3 the estimated costs of producing 6,000 units of a component are:	Per Unit
Direct Material	$10
Direct Labor	8
Applied Variable Factory Overhead	9
Applied Fixed Factory Overhead	12
$1.5 per direct labor dollar
	$39

The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved.

Should the component be purchased from the market?