Total Cost per unit per unit Gadgets Ltd. specialising the household gadgets, has just perfected and test marketed a modified version of a popular gadget. It has three components X, Y and Y one of each is required per gadget. All these components are made and assembled in its own factory and capacity utilisation of the machines is full The modification essentially involves a special machining and fixing a new attachment for which the company has provided for double the existing production capacity to take care of possible increased demand. The cost structure of the modified gadget is as under : Component Machine hours Variable Cost Fixed Cost allocated per unit X 16 Rs. 50 Rs. 15 Rs. 65 Y 24 56 20 76 Z 32 54 30 84 Special machining and assembly 60 45 105 220 110 330 Selling price 500 Since the response to the modified gadget is very good, the Company would like to capture the market in the ensuing year itself by increasing sales. While all the existing machines in the factory are capable of making all the components X, Y and Z, increase of machine capacity cannot be achieved/made during the budget year. However, the special machining process and capacity permits one of the components, either X, Y or Z to be bought from outside. The following offers have been received: Component Price X Rs. 66 Y Rs. 78 Z Rs. 94 a little advertisement support even 75%. The Marketing Manager feels that sales can be increased at least by 50% during the year and with outside if production is to be increased by 50% and 75% respectively. You are required to give your recommendations as to which component should be bought from per unit 1989)