seongnated trombonando W 12 AT 13 de Mac Achievement Test13 AT13-5 3. Make or Buy Elite Electric has an offer from a potential supplier to provide 40,000 units at $65 each that Elite now manufactures at a total cost of $75 per unit. The manufacturing costs for 40,000 units are: direct materials $900,000; direct labor $450,000; variable overhead $900,000; and fixed overhead $750,000. All costs except $500,000 in fixed overhead will be avoided if the parts are purchased (a) What should Elite do in this situation? I (b) Would your answer change if Elite could use the capacity that would become available to produce additional income of $125,000? Explain