Curly Inc.is considering whether to continue to make a component or to buy it from an outside supplier.The company uses 16,000 of the components each year.The unit product cost of the component according to the company's cost accounting system is given as follows: 
Assume that direct labor is a variable cost.Of the fixed manufacturing overhead,30% is avoidable if the component were bought from the outside supplier.In addition,making the component uses 1 minute on the machine that is the company's current constraint.If the component were bought,this machine time would be freed up for use on another product that requires 2 minutes on the constraining machine and that has a contribution margin of $8.10 per unit. When deciding whether to make or buy the component,what cost of making the component should be compared to the price of buying the component?
Definitions:
NMR Data
Data derived from Nuclear Magnetic Resonance spectroscopy, utilized to identify the configuration of molecules.
Quartet
A signal in NMR (Nuclear Magnetic Resonance) spectroscopy indicating the presence of three equivalent protons coupled to the observed nucleus, typically resulting in a pattern of four peaks.
Singlet
A term in spectroscopy describing a state with all electron spins paired, resulting in no net electron spin.
NMR Data
Information derived from nuclear magnetic resonance spectroscopy, providing insights into the molecular structure, dynamics, reaction state, and chemical environment of molecules.
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