Accounting:

Please Solve below

2) Quiett Truck manufactures part WB23 used in several of its truck models. 10,000 units are produced each year with production costs as follows: Direct materials Direct labor Variable Manufacturing Overhead costs Fixed Manufacturing Overhead costs Total costs $ 45,000 15,000 35,000 25,000 $120,000 Quiett Truck has the option of purchasing part WB23 from an outside supplier at $11.20 per unit. If part WB23 is outsourced, 40% of the fixed costs cannot be immediately converted to other uses. Required: a. Should Quiett Truck outsource part WB23? Why? b. What other items should Quiett Truck consider before outsourcing any of the parts it currently manufactures