A company produces 12000 units of bread each period. For a 75 unit batch, costs are:

Direct Materials 140

Direct Labor 100

Manufaccturing overhead 325

Included in manufacturing overhead is 150 for depreciation on facilities and equipment.

A third party vendor has made a proposal to sell the company 12000 units of bread to meet the needs for a lump sum of 45,000.

Evaluate if should the company accept the offer? (If they accept, the company will have to divert time of one of their employees to the third party vendor, the employee earns 50000 right now.