Evaluate the financial impact of Company B's decision to outsource production using relevant costing techniques.

Requirements:

1. Compare the costs of producing a component internally versus outsourcing it to a supplier.
2. Include relevant costs such as direct materials, direct labor, and variable overhead.
3. Factor in qualitative considerations like quality control and delivery time in the analysis.
4. Calculate the differential costs and recommend whether to continue producing internally or outsource.

Cost Element	Internal Production ($)	Outsourcing ($)
Direct Materials	20,000	18,000
Direct Labor	15,000	12,000
Variable Overhead	5,000	4,000
Fixed Costs	10,000	-
Quality Control	High	Medium
Delivery Time	2 weeks	1 week