Jehan Corp. currently manufactures a product with the unit costs shown below. They are looking to outsource the production of these to a reputable company that can supply them for $80 a unit. If production is outsourced, all variable production costs will be eliminated. Building and equipment lease costs AND factory insurance costs will all be eliminated. Markoff, the production supervisor, will continue on with the company and his salary will remain regardless of whether they outsource or not. They really would love to re him because he really stinks, but he has a long-term contract so they are stuck with him. Per Unit Total Variable production costs Direct materials 5 20 Direct labor 10 Variable Overhead 30 Fixed production costs: Factory building and equipment leases $70,000 Factory insurance 50,000 Production supervisor's salary 100,000 4. What are the differential COSTS of outsourcing production? 5. What are the BENEFITS (costs saved) as a result of outsourcing