Bruno Mars Entertainment is considering outsourcing the microphones. Harry Styles Inc., a supplier, has offered to sell the microphones to Bruno Mars Entertainment for $27 each. Bruno Mars Entertainment needs 12,000 microphones each year. I Bruno Mars Entertainment does outsource the microphones, it can use the open manufacturing area to produce another product which would provide a $90,000 contribution per year.

a. Should Bruno Mars Entertainment outsource production of the microphones? Why or why not? Be sure to support your answer with appropriate computations.

b. Provide a short discussion over qualitative factors Bruno Mars Entertainment should consider in this decision.

Bruno Mars Entertainment manufactures microphones and has shared the following related costs