1. [Chapter 7 & 8, 25 points). A manufacturing company has always purchased certain parts from a supplier in Mexico for $50 per part. The supplier is reliable and has maintained the same price structure for years. Recently, because of improvement in the efficiency of operations and reduced product demand, some capacity is cleared up in the company's plant for producing parts in-house. The part could be produced at $40 per unit, with an annual fixed cost of $25,000 per month. The company currently needs 2,000 parts per month. a. Should the company make or buy the part? Why? Show your work b. At what volume of production (number of parts) would the company be indifferent between making and buying the part? Show your work. c. As another alternative, a new supplier located nearby is offering components parts for $50 per part for the first 400 parts ordered and $45 per part for each additional unit ordered. Should the company make the component in-house, buy it from the new supplier, or stick with the old supplier? Why? Show your work. d. At what volume(s) of production would the company be indifferent between buying it from the new supplier and the old supplier? e. Would your answer to (c) change if the company's monthly demand has increased to 3,000 parts? Increased to 5,000 parts? Why? Show your work. f. Using a cross-over analysis, develop a set of rules that the company can use to decide when to make this component, when to buy it from the old supplier, or when to buy it from the new supplier. Draw the cross-over diagram using an appropriately labelled diagram