Borinquen Fabrics (BF) is dedicated to making casual wear (loungewear) for women and men. Internet sales have been a complete success due to social distancing. Its sales level is in the 20,000 units. During the Corona Virus crisis, the Health Department approaches him to explore the possibility of making cloth masks for protection against the virus. The quantity of masks requested by the Health Department is so great that it does not have the capacity to produce them and at the same time continue with its casual clothing line. This is the BF cost chart Sale Price: $ 60 Direct Production Costs: $ 25 Indirect Manufacturing Costs: $ 15 ($ 5 is variable: $ 10 is fixed) Marketing, distribution and customer service costs: $ 7 ( 5 is variable: $ 2 is fixed) BF is undecided whether to outsource clothing production to a manufacturer - Seniors Dreams Come True (SDCT) - of all confidence that the Corona Virus crisis is almost leading to bankruptcy as its main production lines are exclusive models of senior prom dresses BF approaches SDCT and he indicates that he would be willing to produce his casual clothes at a cost of $ 40 The Health Department is proposing to buy BF 1.000.000 masks for S 80. The relevant costs that BF calculates for this production are $ 65. This means that the net profit of this activity of producing masks would generate $ 150,000 of profit. What do you recommend to BF. Do you accept the Health Department order and outsource the production of casual wear or do you reject the Health Department order and continue to produce your successful line of casual wear? Select one: A. You must accept the Health order and continue to insourcing your casual clothing. The cost of outsourcing is cheaper, so your profit would be increased by outsourcing $ 140,000 in addition to the $ 150,000 that would be earned with the Health order. b. You should ask SDCT for a rebate of $ 7 per unit to match the cost of producing insource. If you negotiate the discount, then you must accept the Health order. c. You must reject the order and continue to produce the casual clothing as the cost of outsource is more expensive than the cost of insource d. You must accept the Health and outsource order. Although the cost of outsource is more expensive, the net benefit of the Health order exceeds the additional cost by $ 50,000