Harris Company currently produces a component that it uses in making some of its products. Harris has calculated the following costs for making the part (in excel file).

Harris is considering outsourcing the component. A supplier has offered to sell the component to Harris for $52 each. Harris needs 8,000 units each year.

Should Harris outsource the component? Support your answer with appropriate computations.

Harris Company currently produces a component that it uses in making some of its products. Harris has calculated the following costs for making the part Unit-Level Costs 20 Materials Labor 28 Overhead 10 Allocated Facility-Level Costs 60 Total Cost Harris is considering outsourcing the component. A supplier has offered to sell the component to Harris for $52 each. Harris needs 8,000 units each year Should Harris outsource the component? Support your answer with appropriate computations