Y Company is currently manufacturing a part called CRV for 15,000 unites annually. The part costs $94.50 per unit to make:

Question 2 (12 pts): Y Company is currently manufacturing a part called CRV for 15,000 units annually The part costs $94.50 per unit to make: TOTAL PER UNIT Direct Materials $70.00 $1,050,000 Direct Labor $20.00 $300,000 Variable Overhead $3.00 $45,000 $22,500 $1.50 Fixed Overhead $1,417,500 $94.50 Total An outside supplier has offered to sell the part to Y Company for $94 per unit. If Y Company buys the part from the outside supplier, the manufacturing facilities will be idle and cannot be used for any other purpose. However, none of the fixed costs are avoidable. Given the information above, should Y Company make or buy the part? Please show work to a. support your answer. (5 pts) What is the maximum amount that Y Company should pay for each part in order to be financially indifferent? (That is, what is the highest price the company is willing to pay to purchase one unit of the part?) (2 pts) b. Assume if Y Company decides to purchase the part from the outside supplier for $94/unit, it will need to pay for shipping costs of $2/unit. However, the company will be able to eliminate $12,000 of fixed overhead costs. Should the company make the part or purchase from the outside CS supplier? Ricase/show work to support your answer. (5 pts) CamScanner C