GPB Incorporated manufactures widgets. They are trying to determine whether they should

continue to make the product $\text{'}$in$-$house' or outsource the manufacturing. See below for details:

Volume $=10,000$ Units

An outside manufacturer offered to produce the unit for us at a total cost of $$\frac{32}{?}$ unit. If we were

to go with the outsource contract, we'd still incur $$30,000$ of fixed ovrehead costs. All other

manufacturing costs are avoidable.

REQUIRED:

Determine whether or not we should make the product in$-$house or outsource based

on a financial analysis.