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B) Reliable manufacturing Company has been manufacturing its own widgets that are used in producing its final product. The cost of manufacturing 10,000 widgets is summarized below. Direct materials $20,000 Direct labor 16,000 Variable factory overhead 9,000 Fixed factory overhead 15,000 Total manufacturing costs $60,000 A supplier offers to produce the widgets that Reliable Company needs for $6 per widget. If the company decides to buy from the supplier, 60% of the fixed factory overhead which represents depreciation and insurance costs will still continue. 40% will be avoided. Should the company continue to make the widget or purchase it from the outside supplier? (6 Marks