Space W Inc. manufacturers specialized aerospace parts. A subcontracting opportunity (buying) of providing 2,000 units of Part XCM for $120 000 is being considered. The internal price of Part XCM is as follows;

	Cost per unit
Direct materials	$28
Direct labour	18
Variable Overhead	16
Allocated fixed overhead	4

1. (5 marks) What is the relevant cost (per unit, RND 2 decimal places) to make the part internally?
2. (5 marks) What is the estimated increase/decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? RND to whole dollars
3. (5 marks) What other strategic considerations should be reviewed for this make/buy decision?