Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Total Unit Cost of Making Product  = Direct Material + Direct Labor + Variable Overhead + Fixed Overhead
= $53 + $40 + $36 + $31 
= $160
Total Unit Cost of Buying Product = Fixed Cost + Purchase Cost
= $31 + $145 
= $176
Particular                     Make product($)	Buy product($)
Direct material(7,000 × $53)	371,000                          -
Direct labor(7,000 × $40)	280,000                          -
Variable overhead(7,000 ×$36)	252,000                   -
Fixed overhead(7,000 × $31)	217,000             132,000
                                                                              (217,000 - 85,000) 
Purchase cost                                   7,000 × $145 = 1,015,000
Total cost                                    1,120,000	1,147,000
Difference between two alternatives
= $1,147,000 - $1,120,000
= $27,000
According to the analysis, rubium make the product because buying product cost is more than making the product.