Nunez, Inc. requires 12,000 units of part X45 per year. At the current level of production, the cost per unit is as follows:

JLW, Inc. has offered to sell Nunez 12,000 units of X45 for \($8\) each. If Nunez is no longer required to produce the X45s, a supervisor can be eliminated. The supervisor’s salary of \($24,000\) is part of fixed overhead cost. Other fixed overhead costs would remain the same.
Required:

a. Prepare a schedule that details the advantage or disadvantage of buying the 12,000 units of X45 from JLW, Inc.

b. Discuss the qualitative aspects of purchasing the parts from JLW, Inc.

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Direct material Direct labor Variable overhead Fixed overhead Total $ 3 2 4 $10