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Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following annual costs of producing the 8,000 units of the part. Total Cost Direct materials $ 96,800 Direct labor $ 72,000 Supervisor's salary $ 25,600 Allocated overhead $ 10,400 An outside supplier has offered to make the part and sell it to the company for $27.60 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The allocated general overhead represents xed costs of the entire company. If the outside supplier's offer were accepted, only $2,500 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $36,000 per year for that product. Required: Based on this information, would Recher be nancially better off to continue making the Q89 or to buy them from the outside supplier