15.1 WV is a car manufacturer. It is currently deciding whether to buy in car doors for a particular model rather than continue to manufacture them. The estimated costs for one door are as follows:

384 ACCOUNT ING AND FINANCE FOR BUS INESS Direct materials £70 Direct labour £80 Total fixed costs applicable to car door production* £100,000 Units of production* 10,000

* per year An external supplier offers a price of £140 per door. Should WV choose the external supplier or continue to produce the doors itself? Discuss your answer.