Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11,200 units of subcomponent JXY per month. Direct materials costs $38,000 Direct labour costs 29,500 Variable overhead 15,500 Fixed overhead* 13,500 *Fixed overhead includes $5,100 supervisor's salary. International Firm agrees to supply Montel with 11,200 units per month for a total cost of $148,100. If subcomponent JXY is outsourced, Montel will be able to increase the production and sales of its final product by 1,080 units per month; the product is sold for $115 per unit and its average variable costs per unit are $65. The supervisor's salary will be eliminated if subcomponent JXY is outsourced.