Manama Inc. is now producing TVs. The companys accounting department reports the following costs of producing 100,000 units of the TVs each year:

Direct Materials $4

Direct Labor $2

Variable Overhead $2

Fixed cost $ 3.5

An outside supplier offered to sell 100,000 units to Manama Company at a price of only $10 each.

Required: Should the company stop producing the TVs internally or buy them from the outside supplier?