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Company QRS is considering outsourcing a part of its manufacturing process to a third-party supplier. The supplier offers to manufacture the component at a cost

Company QRS is considering outsourcing a part of its manufacturing process to a third-party supplier. The supplier offers to manufacture the component at a cost of $10 per unit. If the company currently incurs variable costs of $15 per unit for manufacturing the component internally, analyze and compare the total costs for both options and recommend the most cost-effective approach for the company, providing detailed reasoning.

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