Watan Art Incorporated was established in $2015$ in West Malaysia. The company manufactures and supplies various ranges of carpets to residences. The most popular and premium quality models are Arabian and Siamese. The company produces and sells $2,000$ units of Arabians every month. The production of Arabian requires a special material called 'Fine Micro$-$Fabric' known as FMF which is currently produced by the company internally. FMF is registered intellectual property due to its uniqueness and quality. The process manual of FMC production is confidential.One unit of Arabian carpet requires $3$ meters of FMC$.$ The estimated cost to produce three meters of FMC$$ is exhibited below:Direct material$$RM$20$Direct labor$$RM$15$ Variable overhead$$RM$15$Total$$RM$62$Due to the overwhelming demand for Arabian carpets, the company needs to increase its monthly production by $30\%.$ However, the worker shortage in the Arabian carpet department would cause the production increment to be impossible. To solve the problem, Mr Lim, chief officer of production, has suggested shutting down FMC production permanently and the FMC supplies requirement can be purchased from external suppliers. The workers in FMC production can be transferred to the Arabian carpet department to focus and meet the production target. Mr Lim also mentioned that his friend, the owner of ODO Production Incorporated, is willing to produce and supply FMC at RM$38$ for every three meters. ODO nonetheless requires authorization and the process manual of FMC production from Watan Art so that it can manufacture the same product quality. On top of the selling price of RM$30$ per three meters, ODO will also be charging the following additional costs:Quality control$4\%$ of purchase price$$Insurance$3\%$ of purchase price$$Transportation$1\%$ of purchase price$$Sales tax$2\%$ of purchase price.In addition, the company also needs to hire new staff to handle the purchasing of FMC with the expected monthly salary is RM$2,000.$

a$)$ Calculate the relevant cost if the company continues to produce FMce internally.

b$)$ Calculate the cost of purchasing FMC@ from an external supplier, ODO

c$)$ Based on the financial cost analysis, please discuss whether Watan Art should continue to produceFMce internally or buy from ODO.

d$)$Discuss the important non$-$financial considerations in this case before the company makes any decision