2. (5 Points) Part E43 is one of Ran Corporation's products The company's accounting department reports the following costs of producing the 12,000 units of the part that are needed every year. An outside supplier has offered to make the part for $14.70 each. Additionally, should Ran accept the offer the supervisor's salary along with all variable costs would be avoided. The special equipment used to make the part was purchased several years ago and has no salvage value or other use. If the offer is accepted $5,000 of the allocated general overhead would also be avoided. Calculate the net savings or loss if Ran were to accept the offer. Based upon these calculations would you recommend outsourcing or continuing to make the product? ANS