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The Arab Solidarity Company produces Part (C), and the number of units produced from it last year was 2,500 units, and the unit cost for

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The Arab Solidarity Company produces Part (C), and the number of units produced from it last year was 2,500 units, and the unit cost for this part was as follows: Direct materials 12.5 OMR Direct action 10 Omani Rials Variable industrial costs 5 Omani Rials Fixed manufacturing costs 10 Omani Rials Fixed administrative costs 1 Omani Rial The company now has an opportunity to purchase this part at a price of 35 riyals per unit, and the company expects that it will need 3000 units during the next year, and that the cost of direct materials and direct work will increase by 10%, and other costs will remain unchanged. Also, 65% of the fixed costs will remain the same in the case of purchase and the remaining 35% can be avoided. There is no other alternative in which the unutilized energy can be used in its production instead of producing part (c) if it is purchased. Required: Determine whether the company should buy Part C or continue to produce it? Support your answer with the necessary calculations

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