The management of HPE Industries has been evaluating whether the company should continue manufacturing a component or purchase it from an external supplier. A $100 cost per component was determined as follows: Direct materials $ 15 Direct labour 40 Variable manufacturing overhead 10 Fixed manufacturing overhead 35 $100 HPE uses 4,000 components per year. After GG Corp submitted a bid of $80 per component, some members of management felt they could reduce costs by buying from outside and discontinuing production of the component. If the component is purchased from GG, HPEs unused production facilities could be leased to another company for $50,000 per year. Required: (1) Determine the unit cost to continue production of the component. (2) Should the company make or buy the component? State the total dollar difference in favour of that alternative. (3) Assume that HPE could eliminate one production supervisor with a salary of $30,000 if the component is purchased from an outside supplier. Determine now if the company should make or buy the component and state the total dollar difference in favour of that alternative