Juliets Office Furniture is considering buying the legs it uses in the manufacture of office desks from an outside vendor. Currently, Juliets Office Furniture makes the legs in its own manufacturing facility. Juliets Office Furniture can buy the legs from an outside supplier for $5.75 each. The company uses 200,000 legs each year. Information about Juliets Office Furnitures cost to manufacture the 200,000 legs is as follows:

	Per Unit	Total
Direct Material	$2.50	$500,000
Direct Labour	$0.50	$100,000
Variable Overhead	$2.00	$400,000
Fixed Overhead	$1.25	$250,000
Total	$6.25	$1,250,000

Fixed cost for Juliets Office Furniture would not change if the company stopped making the legs.

Required: Prepare a relevant cost schedule that indicates whether Juliets Office Furniture should buy the legs from the outside supplier or continue to make them.

ALL CALCULATIONS MUST BE SHOWN