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Problem 4 (10 marks) Northstar uses 200 units of component RT82 each month. One of Northstar's supplit offered to supply this component at a price of $4,300 per unit. Northstar's cost of manufacturing one unit of component RT82 at its own facilities is as follows: Direct material Material handling (20% of direct material cost) Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost per unit $300 60 1,400 1,000 2.400 $5,160 Other information: . Material handling costs are variable costs of receiving these materials. of the fixed manufacturing overhead, two-thirds of the cost would continue component was manufactured by the supplier. If Northstar purchased the units from the supplier, the idle plant capacity co rented out to earn revenue of $150,000 per month. . Required: a) If Northstar purchases the units from the supplier, by how much will net inc or decrease? Should Northstar purchase these units from the supplier? Sho (8 marks) b) List two other factors besides the above costs that management should con making this decision. (2 marks)