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A company has the opportunity to outsource production of a part used in operations. The vendor has offered to sell them 3,500 units at $20

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A company has the opportunity to outsource production of a part used in operations. The vendor has offered to sell them 3,500 units at $20 /unit. To produce 3,500 units of the product, the following costs are incurred: Variable cost per unit $18.00 /unit Fixed manufacturing overhead $13.50 /unit Fixed selling & administrative $2.00/ unit If the company outsources, all fixed \( \$ \& A \)amp;A and $4.00 of fixed manulacturing overhead is avoidable. From a quantitative standpoint, should the company continue making the product or outsource, and how much would they save with their choice, assuming they need 3,500 units

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