ALMA Company uses 4,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $70,000 as follows:

	Direct materials.............................	$20,000
	Direct labor....................................	14,000
	Variable manufacturing overhead.	16,000
	Fixed manufacturing overhead......	20,000
	Total costs......................................	$70,000

An outside supplier has offered to provide Part X at a price of $ 16 per unit. If ALMA Company stops producing the part internally, 8,000 of the fixed manufacturing overhead would be eliminated.

Required:

1. Prepare an analysis showing the annual advantage or disadvantage of accepting the outside supplier's offer.

What other related factors must be considered to determine the above decision?