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5. The Flintrop Company has been approached by a supplier who has offered to provide them with a switch that Flintrop currently makes as part

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5. The Flintrop Company has been approached by a supplier who has offered to provide them with a switch that Flintrop currently makes as part of a generator. The following data of the Flintrop Company is available (based on 6000 switches produced each period.) Direct materials $ 4.00 Direct labor 3.00 Variable overhead 2.00 Traceable fixed overhead 3.60 Allocated fixed general overhead 1.50 Analysis shows that one-third of the traceable fixed overhead is for the switch department supervisor, who would be let go. The remaining about is for depreciation on special equipment which they will be unable to sell. The supplier has offered to sell the switch for $11.00 per unit. What would you recommend to Flintrop. Please show your work. (8 pts)

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