Direct labor (4 operative workers) Supervisor Machinery depreciation Administrative costs quote Annual total costs 40.000 25.000 25.000 405.000 An external supplier offers the same component at a unitary price equals to 80. Determine if it is economically convenient for May Itd to accept the offer of the supplier, having the additional following information: a) 2 operative workers are employable in an other department (cost 40.000), a third is employable in another department at the 50%, the last one will be fired: b) supervisor can leave the company and he is hired by another company with a part-time contract at 60%; c) the machinery can be employed in another department for 3 years (recovery value: 120.000); d) the department closure could decrease the administrative costs at 20.000. 3. Octoberfest ltd produces in a dedicated department a component (annual volume 10.000 units) with the following annual costs: Raw material Machinery power (variable quote 95%) 500.000 50.000