Kilmartin Company is considering outsourcing a key component. A reliable supplier has quoted a price of S61.50 per unit. The following costs of the component when manufactured in-house are expressed on a per unit basis:

Unit Costs:

Direct materials: $23.50

Direct labor: 15.70

Variable overhead: 26.20

Fixed overhead: 6.50

Total costs: $71.90

Should Kilmartin Company outsource the component?

THE FOLLOWING ARE OPTIONS FOR SAVINGS AND ADDITIONAL COSTS: costs of purchase, direct labor costs, direct materials costs, fixed overhead costs, variable overhead costs. FOR RELEVENT AMOUNT, YOU WILL INSERT A NUMERIC VALUE FROM THE GIVEN DATA.