Nongshin Company manufactures various instant noodles. It produces various types of sauces for instant noodles and is considering whether to continue producing the fried noodle by itself or purchase it from an outside vendor. Nongshin currently incurs $0.35 for direct materials, $0.20 for direct labor, $0.07 for variable manufacturing overhead, and $0.06 for fixed manufacturing overhead per unit of instant noodle. The cost to purchase fried noodle from the outside vendor is $0.65 per unit of instant noodle.

Q5. If the fixed manufacturing overhead cost is unavoidable even if Nongshin elects to buy the fried noodles from the outside vendor, should Nongshin produce the fried noodles by itself or purchase it from the outside vendor?