Turnington Company is currently manufacturing Part P$119.$ It produces $50,000$ units of Part P$119$ per year.

This part is used in the manufacturing of many products produced by Turnington. The breakdown of the cost per unit for P$119$ is shown below.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Unit cost

$$5\mathrm{.}00$

$1\mathrm{.}50$

$3\mathrm{.}00$

$4\mathrm{.}00$

$$13\mathrm{.}50$

The fixed overhead cost $($at $$4/$unit$)$ would still remain with the company even if Turnington stops manufacturing Part P$119.$ An outside supplier has offered to sell the same part to Turnington for $$12.$

Currently, there is no alternative use for the capital assets used to produce Part P$119.$ These capital assets will not be sold if the company chooses to buy Part P$119.$

a$)$ Should Turnington Company make or buy Part P$119?$

b$)$ What is the maximum price Turnington should be willing pay an outside supplier for the part?

c$)$ If Turnington buys the part for $$12$ instead of making it$,$ by how much will income from operations increase or decrease?