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Emery products is deciding whether to outsource the production of a certain component that is included in all of its products. if currently costs Emery

Emery products is deciding whether to outsource the production of a certain component that is included in all of its products. if currently costs Emery products $1.20 to make each component in house. if emery products outsourced,it can buy the component ready -made for $0.90 each,and can shut down the production facilities it is currently using to manufacture the component, and save $20,000 a year in fixed costs. Annual requirement for the component is 12,000 units. what is the effect of outsourcing( make or buy).

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