Question 34 Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,900 units of subcomponent JXY per month. Direct materials costs $39,200 Direct labour costs 30,800 Variable overhead 14,100 Fixed overhead* 13,600 *Fixed overhead includes $4,900 supervisor's salary. International Firm agrees to supply Montel with 10,900 units per month for a total cost of $131,700. If subcomponent JXY is outsourced, Montel will be able to increase the production and sales of its final product by 1,200 units per month; the product is sold for $115 per unit and its average variable costs per unit are $85. The supervisor's salary will be eliminated if subcomponent JXY is outsourced