easy equations

Mountain Goat Cycles is now producing the heavy-duty gear shifters used in its most popular line of mountain bikes. The company's Accounting Department reports the following costs of producing 8,000 units of the shifter internally each year: Per 6000 Unit Units Direct materials 36000 Direct Labor 24000 Variable Overhead 6000 Supervisors Salary 18000 Depreciation of Special Equipmer 12000 Allocated general overhead 30000 Total Cost 21 126000 An outside supplier has offered to sell 8,000 shifters a year to Mountain Goat Cycles at a price of only $19 each. Should the company stop producing the shifters internally and buy them from the outside supplier? But what if the space now being used to produce shifters could be used for some other purpose? Assume that the space now being used to produce shifters could be used to produce a new cross-country bike that would generate a segment margin of $70,000 per year