Component T6 is used in one of the company's products. The unit product cost of the component according to the company's cost accounting system is determined as follows:

Direct Materials	$ 45.00
Direct Labor	32.00
Manufacturing Overhead Variable	8.00
Manufacturing Overhead Fixed	32.00 *
Total Unit Cost Per Product	$ 117.00

* Manufacturing Overhead Fixed will remain, even if they buy the product from an outside supplier

An outside supplier has offered to supply component T6 for $101 each. The outside supplier is known for quality and reliability. Bulan chronically has idle excess capacity and no opportunity costs exist.