wered Top-A Sdn Bhd manufactures and assembles several components for a clock radio. After having a management meeting the accountant noticed that the amount of time and resources spent for making one of its components namely D12 is too high. Therefore, the production manager needs to consider external supplier to outsource component D12 it of 15.00 uestion Currently the company manufactures 20,000 units per annum of the component D12. The costs assigned to the component D12 as follows: Unit cost (RM) Direct material 12 Direct labour 10 3 Variable manufacturing overhead Fixed manufacturing overhead 8 33 Total costs The above costs are expected to remain unchanged if the company continues to manufacture the component 012. The supplier, AJ Sdn Bhd has offered to supply 20,000 of component D12 per annum at price of RM27 per unit. Direct materials, direct labour and variable manufacturing overhead are avoidable if component 012 is outsourced. Fixed manufacturing overhead cost per unit would be reduced to RM4 if the company accepts AJ's offer. Assuming the capacity that is required for component D12 has no alternative use. Required: (Show all calculations) "mid=1921020 The supplier, AJ Sdn Bhd has offered to supply 20,000 of component D12 per annum at price of RM27 per irect materials, direct labour and variable manufacturing overhead are avoidable if component D12 is urced. Fixed manufacturing overhead cost per unit would be reduced to RM4 if the company accepts AJ's uifer. Assuming the capacity that is required for component D12 has no alternative use. Required: (Show all calculations) a) As an accountant, you are required to prepare financial information in evaluating to make or buy decision by showing total cost of continuing to make, total cost of buying the different of the relevant cost and total cost saving (if any). (8 marks) b) Based on your results in requirement (a), state whether Top-A Sdn Bhd should make or buy the component D12 from AJ Sdn Bhd. Justify your answer. (4 marks) c) Short-term decisions consider mainly financial factors and the net gain in monetary terms, but the final decision will still include the qualitative factors. Explain TWO qualitative factors when considering short-term decisions (3 marks) (Total: 15 marks)