Question (write the answer in text form dont post the picture of the answer ) 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

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.

Required:

1. Should the component be purchased from the market? (1.5 marks)
2. Being a production manager, provide your logical opinion on choosing between purchasing the component from market or producing in-house (1 marks)