1. 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	$ 6
Fixed costs	15,000
Nonmanufacturing costs
Variable per unit	1
Fixed costs	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?

1. 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?