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Cube Manufacturing usually produces its own parts for assembly. The following monthly data are available for one of the parts, Part A31: Manufacturing costs

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Cube Manufacturing usually produces its own parts for assembly. The following monthly data are available for one of the parts, Part A31: Manufacturing costs Variable per unit Fixed costs Nonmanufacturing costs Variable per unit Fixed costs $ 6 15,000 1 9,000 Cube needs 2,000 units of Part A31 every month. An outside supplier offers to deliver that part for $11.50 each. By accepting the offer, Cube can save half of the fixed manufacturing costs and all variable costs, but the fixed nonmanufacturing costs are not affected. Required: 1. Should Cube Manufacturing accept the offer and outsource Part A31? Why? 2. If the facility used to produce Part A31 can be leased out to generate a monthly rental income of $3,000, what should Cube Manufacturing do?

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