$35)$ The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company

uses to make multiple products at its facility in Virginia. The managerial accountant reported to the

operations manager that $12\%$ of its fixed overhead costs assigned to Part Z will not continue if Sellers

Manufacturing outsources the production of Product Z at $$44$ per unit to Manufacturing World. The

managerial accountant reported that to produce $1,200$ units of Product Z$,$ Sellers Manufacturing incurs

the following costs:

$10$

Should Sellers Manufacturing produce Part Z or outsource it to Manufacturing World?

$($hint: first find the total cost including variable and fixed cost for making part Zs and then compare this to the price

of outsourcing considering the price of buying the parts and the unavoidable costs.$)$