A Chinese company has proposed to MPB Ltd that it could produce one of the components used in the manufacturing of the speakers (component A) and supply it to MPB for pound 10 delivered. This price is guaranteed only for one year. Each speaker set requires 1 unit of component A which is currently costing MPB pound 18 to produce (pound 12 of which is avoidable if component A is outsourced). If it accepts the outsourcing offer, redundancy labour costs will be incurred by MPB amounting to pound 35,000. Assume that MPB has no other use for the released capacity, if it decides to outsource component A. i. With supporting workings, advise MPB whether or not it should accept this proposition (ignoring any wider issues). A Chinese company has proposed to MPB Ltd that it could produce one of the components used in the manufacturing of the speakers (component A) and supply it to MPB for pound 10 delivered. This price is guaranteed only for one year. Each speaker set requires 1 unit of component A which is currently costing MPB pound 18 to produce (pound 12 of which is avoidable if component A is outsourced). If it accepts the outsourcing offer, redundancy labour costs will be incurred by MPB amounting to pound 35,000. Assume that MPB has no other use for the released capacity, if it decides to outsource component A. i. With supporting workings, advise MPB whether or not it should accept this proposition (ignoring any wider issues)