Cullumber, Inc. uses $840$ units of the component NJF$1$ every month to manufacture one of its products. The unit costs incurred to

manufacture the component are as follows:

Overhead costs include variable material handling costs of $$14$ that are applied to products on the basis of direct material costs. The

remainder of the overhead costs are applied on the basis of direct labor dollars and consist of $50\%$ variable costs and $50\%$ fixed costs.

A vendor has offered to supply the NJF$1$ component at a price of $$191$ per unit.

$($a$)$

Should Cullumber purchase the component from the outside vendor if its capacity remains idle?

The unit

be purchased from the outside vendor.