A Corporation makes 900,000 units of soap. It currently makes the boxes for the soap. The costs to produce one box are: direct materials $.18; direct labor $.11; variable manufacturing overhead $.15; and fixed manufacturing overhead $.21. An outside supplier, fancy boxes, has offered to sell the corporation all of the boxes it requires for $.60 each. If the corporation decided to discontinue making the boxes and instead buys them from fancy boxes, 30% of the fixed manufacturing overhead costs could be avoided.

Should the corporation continue to make the boxes? (answer yes or no)

What is the dollar cost advantage per unit of your decision?