Make or Buy (Outsourcing; diverting employee; relevant costs; sunk costs)

Linkage makes 12,000 chains each month. These chains are used to make other products they manufacture. For a 75-roll batch of chains, Linkage's costs are as follows: Direct materials: $145 Direct labor: $85 Manufacturing overhead: $335 Total: $565 Within manufacturing overhead, $150 per batch is for depreciation expenses. Don't consider any other costs or expenses. An outsourcer offers to sell you 12,000 chains for $46,000. Assume that using the outsourcer won't impact your sales activities. Given this information, provide advice to Linkage regarding accepting/rejecting the outsourcer's offer. Assume that, if you accept their offer, you must divert one of your employees to manage the outsourcer's supply chain. This employee is currently paid $51,000. You will not be paying this employee more or hiring anyone to replace this employee to handle this employee's original duties. Now, using this same information, re-evaluate the outsourcer's offer with the following facts: - If you accept the offer, you rent your facilities to generate $32,000 additional revenue, but will incur costs of renting of $13,000 for security