Abe Entertainment manufactures microphones and has shared the following costs:

direct materials: 9.50

direct labor: 8

manufacturing OH: 2.5

Allocated facility level costs: 6

total costs: 26

Abe Entertainment is considering outsourcing the microphones to Harry Inc. Harry offered to sell the microphones to Abe for $27 each. Abe needs 12,000 microphones each year. If Abe outsources the microphones, it can use open manufacturing to produce another product which would provide $90,000 contribution per year.

Should Abe outsource microphone production? Why?

What are qualitative factors Abe should consider?