Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unit could be bought elsewhere for $082per unit. Waterways has fixed costs of 020per unit that cannot be eliminated by buying this unit. Waterways needs 460,0c0 of these units each year. f Waterways decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it no buys from ancther company. Waterways uses approximately 500 of these units each year. The cost of the unit is $12.66. To aid in the production of this unit, Waterways would need to purchase a new machine at a cost of $2.345, and the cest of producing the units would be $9.20 a unit. Your answer is incorrect. Without cxrisidering the possibility of making thee timing unit, evaluate wher her waterways shold huy cr critinue tu make the small fit ti The company should mae the itting Incremental cost (savinsi will be $ Your answer is incorrect What is Waterways' opportunity cost if it chooses to buy the small fitting and startmanufacturing the timingunit? The opportunity cost is $ Your answer is inorrect Would it be wise for Waterways to buy the fitting and manufacture the timing unit? The company shouldsmall ittings and buy the timing units