Oak Harbor Woodworks is currently producing 10,000 XYZ goods. The selling price of XYZ goods is $40/unit. The production cost of XYZ goods is as follows:

DM: 2/unit

DL: 3/unit

Var MOH: 5/unit

Supervisor salary: 2/unit

Depreciation of special equipment: 3/unit

Allocated overhead cost: 2/unit

Rent: 4/unit

Utility: 5/unit

Oak Harbour is considering to buy the same XYZ goods from outside at 24/unit. If they decide to buy the goods from outside, they can use their factory to produce 6,000 ABC goods at 16/unit production cost. Selling price of those ABC goods will be 21/unit.

Requirements:

Given the data above, what do you think your decision should be? Should you prefer to buy XYZ goods from outside or to make the XYZ goods by yourself?