The estimated costs of producing 6,000 units of a component are: Per Unit Total Direct Material $10 $60,000 Direct Labor 8 48,000 Applied Variable Factory Overhead 9 54,000 Applied Fixed Factory Overhead 12 72,000 $1.5 per direct labor dollar $39$234,000 The same component can be purchased from market at a price of $28 per unit. If the component is purchased from market, 10% of the fixed factory overhead will be saved. Required: Choose... Should the component be purchased from the market or made in the company? Making How much is favor to purchasing or making? Favor of Buying $1,200 Buying Favor of Making $1,200