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Question 5 (5 points) A Company makes part A to be used in the production of its product. The costs of producing Part A internally annually are as follows: 12,000 units Direct materials $100,000 Direct labour 40,000 Variable factory overhead 35,000 Fixed factory overhead 70,000 The Company has the opportunity to buy Part A from an outside supplier for $14 each. If they buy the part, there would be no other use for the production facilities and total fixed factory overhead costs would not change Required: Calculate the increase or decrease in profits if the outside supplier's offer is accepted. Should the supplier's offer be accepted