This question if full.

And i need 101% correct solution with step by step solution

D NONIM 116 . 11.7 Key Factor, Make or Buy, Uncertainty and Probability GG Ltd manufactures and sells an Equipment called Water Purifier. The cast data for each batch of ten nd Purifier is as follows - A B Components 28 20 24 Machine Hours 4 2 Labour Hours 24 Variable Costs 64 108 22 26 36 64 Fixed Costs as apportioned? 52 Assembly Costs (all variable) * 50 per batch. Selling Price 800 per batch. Maximum available machine capacity for making components A, B and C is 10,800 hours and it cannot be increased further. Labour is available for making components D and E and for assembling the product Estimated increase in demand next year is 50% and Fixed Costs in general may increase by 10,000. In order to increase production capacity to meet increased market demand, the Company decided to purchase one of the machine-made components. Quote Ltd is the only Supplier of components A, B and C. Because of incomplete records, it is unable to quote single figure prices. Its quotation is as follows Component Pessimistic View Probability Most Likely View Probability Optimistic View Probability A 120 0.25 3110 0.5 80 0.25 200 0.25 * 130 1.5 3140 0.25 160 0.25 140 0.5 *120 0.25 It is agreed between the Companies that the price of each of the components will be determined on an overall basis based on information found in the quotation. . B C From the above, you are required to - 1. Indicate, in the context of Key Factor, the maximum number of batches that could be produced, if each of the three alternatives namely buying A or B or C is considered. 2. Analyse the financial implication of purchase and advise which component is to be bought keeping in view the fact that production capacity will be limited to a 50% increase. 3. Prepare a Profit Statement for the period assuming that the Component chosen by you is bought out and extra production is made and sold