4 E4.17 Roccabruna Corporation currently produces 5,000 tablecloths per period. The production cost per tablecloth is: Direct materials Direct labor $5 2 Unit-related overhead Total 1 $8. Batch-related overhead is $1,000 per batch and five batches are normally used to produce 5,000 tablecloths. Facility-sustaining overhead is $300,000 per period, and 10 percent is allo- cated to the tablecloth product line. A private contractor has offered to supply all of the labor needed for production at a cost of $2.50 per tablecloth. If this offer is accepted, direct laborers will be laid off and unit-related overhead will decrease by 70 percent. Should Roccabruna ac- cept the contractor's offer? Why or why not? What other factors should Roccabruna consider?