Each year, Mearic Inc. manufactures 10,000 components that are used in the company's manufacturing process. For 2023, the following manufacturing costs were budgeted:

Direct materials ($472,500)

Direct labour ($756,000)

Variable overhead ($283,500)

Fixed overhead ($378,000)

Total costs = $1,890,000

Recently, a potential supplier approached management at Mearic Inc. with an offer to sell these components to Mearic Inc. for $150 per unit. If management at Mearic Inc. agrees to buy the components from the supplier, the company would still be required to pay fixed overhead; however, all other manufacturing costs would be avoided.

Required: (A) Based on financial considerations alone, should Mearic Inc. accept the offer? (B) Before accepting or rejecting a potential suppliers offer, what qualitative factors should a

company such as Mearic Inc. consider?