Question 1 (20 points) Howard Company manufactures guitars and has been purchasing freboards for their guitars at a cost of $125 per unit. The company, which is below full capacity, charges factory overhead to production at the rate of 30% of direct labor cost. The fully absorbed unit costs to produce a comparable fretboard are expected to be as follows: Direct Materials Direct Labor Factory Overhead Cost per Unit $ 60 $ 40 $ 12 $112 If Howard Company manufactures the fretboards, fixed factory costs will not increase, and factory overhead costs associated with the fretboards are expected to be 20% of the direct labor costs. Question: Should Howard Company make or buy the fretboards? Show the potential gain per unit for your decision