Question 2 Thunder Company is considering outsourcing a key component. A reliable supplier has quoted a price of RM755.00 per unit. The following costs of the component when manufactured in-house are expressed on a per unit basis: In addition, Thunder Company incurs fixed overhead at a total cost of RM150,000. The company is currently manufacturing in-house and selling 1500 units of the component. a. What assumptions need to be made about the behaviour of overhead costs for Thunder in order to analyse the outsourcing decision? (5 marks) b. Should Thunder Company consider outsourcing the component? Please show any relevant calculations and justify your opinion. (20 marks) c. What other factors are relevant for this decision