Make or Buy decision You are the project manager on a Project VIM, which is building a new printer, scanner, copier and fax machine from various component parts. One of the component part for the VIM product is currently available from a supplier for $115,000 for 5000 units you need. You took over for a prior project manager who allocated $90,000 for this component. This means that you will exceed your budget if you purchase the VIM component units from the supplier. You reach out to your in-house manufacturing group and find that you can produce these 5000 units in- house, within a time frame that fits the project timeline. The manufacturing group indicates that there is a one time-charge of $3000 for setting up the production line. The material and labor cost will be $12 per unit if the firm manufactures the product in/house. You have also learn learn that since this is a new set-up ( which is using old equipment), the in- house manufacturing team estimates the following defects percentages, as well as the probability of those defects occurring Defect % 0. 25. 35. 40 Prob. of occurrence. 10. 60. 20. 10 The replacement cost for defective in-house is $30/defective unit Calculate the following using excel template - Total material costs - Expected number of defective units at each defect % - Cost of replacing defective units at each defect % - Material cost plus cost of replacing defective units at each defect % -The probability of cost for the defect % levels - Expexted value of "making" components in-house