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:

12.5RO	Direct materials
10RO	Direct action
5RO	Variable industrial costs
10RO	Fixed manufacturing costs
1RO	Fixed administrative costs

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.