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Each year, Robin Products, Inc. manufactures and uses 20,000 units of a particular part in producing one of its final products. An outside supplier has

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Each year, Robin Products, Inc. manufactures and uses 20,000 units of a particular part in producing one of its final products. An outside supplier has indicated that it will produce the part for $40 per unit. Currently. Robin is producing the part itself with the following unit manufacturing costs based upon the 20,000 units produced. If Robin buys the part from the outside supplier, fixed manufacturing overhead will decrease by $80,000. REQUIRED: (1) (2) Using the attached form, prepare an analysis to determine if Robin Products, Inc. should continue to produce the part or should it buy the part from the outside supplier? Show appropriate calculations to support your answer. Using the attached form and assuming that Robin Products, Inc. could rent its facilities to another manufacturer for $50,000 if it buys the part from the outside, would this change your answer? Explain. \begin{tabular}{|l|l|l|l|l|} \hline (1) & \multicolumn{4}{|c|}{\begin{tabular}{l} ROBIN PRODUCTS, INC. \\ MAKE OR BUY ANALYSIS \end{tabular}} \\ \hline & & Buy & Difference \\ \hline & Cost To Make Product: & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & Cost To Purchase Product From Supplicr & & & \\ \hline & Totals & & & \\ \hline & DECISION & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ (2) } & \multicolumn{4}{|c|}{\begin{tabular}{l} ROBIN PRODUCTS, INC. \\ MAKE OR BUY ANALYSIS \\ \end{tabular}} \\ \hline & & Make & Buy & Difference \\ \hline & Cost To Make Product: & & & \\ \hline & & & & \\ \hline & + & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & Cost To Purchase Product From Supplier & & & \\ \hline & Totals & & & \\ \hline & & & & \\ \hline & DECISION & & & \\ \hline \end{tabular}

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