PROBLEM Dog Company makes 4,000 units per year of a part 5C for use in one of its products. Data concerning the unit production costs of the part follow out of question Direct Materials $35 Direct Labour $10 $8 Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufacturing Cost per Unit $20 $73 An outside supplier has offered to sell Dog Company all of the part 5Cs that it requires for Szo per unit. Dog Company decided to discontinue making the part 5C, 30% of the above fixed manufacturing overhead costs could be avoided Required: Assume that Dog Company could use the facilities presently devoted to production of the part 5cs to expand production of another product that would yield an additional contribution margin of $60,000 annually. Should Dog Company continue to make part SC or purchase from the outside supplier? Paragraph B