accouting and finance

Question \#2 (10 Marks) For the year ended December 31, 2021, MUMSON Company manufactured the required 12,000 units of a component part that is used in its finished product. To produce these component parts, the company incurred the following costs for 2021: The purchasing department has found that it can purchase all 12,000 units of the same component part from an outside supplier for $26 per unit. The fixed manufacturing overhead includes $48,000 pertaining to the production manager's annual salary. If the parts are purchased, the production manager's job will be terminated. The balance of the fixed manufacturing overhead pertains to factory facility related costs (insurance, property taxes, etc.) which will not be eliminated if the component part is purchased. If the part is outsourced, a new position will be created to operate the forklift to unload the shipped-in parts. This new position will pay an annual salary of $22,000 As well, if the component part is purchased from the outside supplier, MUMSON Company will have to hire another new employee to unpack the supplier delivered parts and inspect them for defects. This employee will be paid at a rate of $0.50 per part. Lastly, if the component part is purchased from the outside supplier, MUMSON Company would use the freed up factory space to host wedding receptions and an indoor soccer league which would generate annual income of $38,000. Required: 1.) Should MUMSON Company purchase the component part from the outside supplier or continue to make ir? Clearly state your decision and support your answer with analysis considering both altematives and showing the impact on Net Income. (Show all calculations)