Digital Electronics Inc. manufactures computer monitors, which includes a power supply. Digital's current costs of manufacturing the 10,000 power supply units needed per month are: Direct materials $900,000 Direct labour 240,000 Variable manufacturing overhead 160,000 Fixed manufacturing overhead 300,000 Total manufacturing costs $1,600,000 Another manufacturer has offered to sell Digital the needed 10,000 power supply units per month for $130 per unit, offering a flexible delivery schedule which Digital wants. Digital expects fixed overhead will be reduced by $50,000 per month if power supply units are purchased from the outside supplier. If the power supply units are purchased Digital will have to pay $5.00 per unit to transport them players to its manufacturing plant. There it will add its logo to them at a cost of $1.00 each. No alternative use is available for the unused capacity if the power supply units are purchased rather than manufactured. Required: Prepare an analysis to show whether or not Digital should outsource production of the power supply units