8 Question 3: Abdur Rahman's Corporation estimates that, it will produce 25,000 units of an electronic sensor part that goes into one of the final products, called a Fluctron. It Currently produces this sensor internally but considering outsourcing this activity. Current internal capacity permits the production of a maximum of 40,000 sensors. The production manager has prepared the following information concerning the internal manufacture of 40,000 sensors. Cost Per Sensor Direct Materials $15 Direct labor Variable overhead Fixed overhead Total cost per product $44 The fixed overhead of $11 includes a $2 per unit allocation for salary paid to a supervisor to oversee production of sensors. The fixed cost would not be reduced by out sourcing; except the supervisor's employment would be terminated. Assume if Abdur Rahman's Corp outsources it purchase price from the outsourcer is $38 per unit. Required: Should Abdur Rahman outsource: Why or Why not? Show all computation. [5 Marks ] 10 11