Outside-is-Cold Inc. must decide whether to make or buy the lining used in its winter coats.

The cost of producing 60,000 linings for its winter coats are as follows.

Per UnitTotalDirect materials$0.50$30,000Direct labour0.7042,000Variable overhead0.7545,000Fixed overhead1.0060,000Total$2.95$177,000

The company has an opportunity to buy the lining from an outside supplier at $2.75 per lining.

If the company purchases the lining, all the variable costs and one third of the fixed costs will be eliminated.

Outside-is-Cold Inc. wants to know what non-financial factors should be considered when making the decision about buying rather than making a component of the company's product?

Is the quality of the purchased component acceptable?

Will the outside supplier increase prices significantly in the future?

Will the supplier deliver on time?

All of the above