QUESTION5 (20MARKS) 5.1 REQUIRED Study the information given below and answer the following questions: 5.1.1 Should Sibiya Limited make or buy the component? Support your answer with the relevant calculations. (6marks) 5.1.2 dentify TWO (2) qualitative factors that Sibiya Limited should consider before making the decision to buy or make the component. (2 marks INFORMATION Sibiya Limited manufactures a component for one of its products . The cost per unit for the component is expected to be R70 for materials and R50 for direct labour. The manufacturing overheads are expected to be R100 per unit, 20% of which are variable. The company has sufcient capacity to manufacture 21 000 units of the component that are required. An investigation revealed that the component can be purchased from an outside supplier at a cost of R200 per unit.