a company manufactures 5,000 timers a month that it uses in producing oven toasters. The production cost for each unit is:

Materials 25

Labor 20

Variable overhead 15

Fixed overhead (based on 5,000 timers) 18

Total 78

The company is considering to purchase the timers from a well-known timing control manufacturer for 65 per unit. If the timers are purchased, the factory space currently used to produce the timers can be used as a warehouse, thus reducing warehouse rental by 5,000 a month. Should the company continue to make the timers or just buy them from the outside supplier?