Cube manufacturing usually produces its own parts for assembly. The following monthly data are available for one of the parts, part A1

Manufacturing cost:

Variable cost-6tk

Fixed cost-15000tk

Non manufacturing costs:

VC-1tk

FC-9000tk

Cube needs 2000 units of part A1 every month. An outside supplier offers to deliver that part for tk 11.50 each. By accepting the offer, cube can save half of the fixed manufacturing costs and all variable costs, but the fixed non manufacturing costs are not affected.

a)Should cube manufacturing accept the offer and outsource part A1?why?

b)If the facility used to produce part A1 can leased out to generate a monthly rental of tk3000.What should cube manufacturing do?