Chattanooga Development Company has learned that a small rubber 0 -ring it now manufactures at a cast of $1.00 per unit could be bought elsewhere for $0.82 per unit. The Company has fixed costs of $0.20 per unit that connot be eliminated by buying the rubber 0 -ring. The company produces 460,000 of these O-rings each year. If Chattanooga Development Company decides to buy rather than produce the rubber O-rings, it can devote machinery and labor to making a heat sensor that it currently buys from another company. The Company needs 500 heat sensors each year, and the cost to buy the heat sensors is $12.66 each. The cost of making each heat sensor would be $9.90. a) For this part, use only the information in the first paragraph and do not consider the possibility of making the heat INSTRUCTIONS: sensors. Prepare the analysis to evaluate whether the Company should buy or continue to make the rubber O-rings. b) Prepare a calculation of the Company's opportunity cost if it decides to buy the rubber O-rings and begin making the heat sensors. c) Prepare the analysis to evaluate whether the Company should buy or make the rubber O-rings assuming that the Company would begin making the heat sensors if it bought the rubber O-rings. Indicate what the Company should do