JK Engineering Company manufactures a variety of air-conditioning units for automobiles. The company has just received an offer from an outside supplier to provide the electric compressor for the companys heat pump system line, at a price of $42 per unit, over the next 7 years. The company is interested in this offer since its own production of electric compressors strains many parts of heat pump production systems. The company estimates that if the suppliers offer were accepted, the direct labor and variable overhead costs of the heat pump system line would be reduced by 20% and the direct materials cost by 25%. Under present operations, the company manufactures all of its own heat pump systems from start to finish