Royal Company uses $20,000$ units of part R$-3$ each year in manufacturing its product. The cost to manufacture part R$-3$ follows:

PER UNIT TOTAL

Direct materials $$4\mathrm{.}80$ $$96,000$

Direct labor $$7\mathrm{.}00$ $$140,000$

Variable manufacturing overhead $$3\mathrm{.}20$ $$64,000$

Fixed manufacturing overhead $$10\mathrm{.}00$ $$200,000$

Total Manufacturing Cost $$25\mathrm{.}00$ $$500,000$

Of the fixed manufacturing overhead, $60\%$ represents allocated plant costs whereas the remaining $40\%$ relates to part R$-3($e$.$g$.$ supervisor$$s salaries$)$ that would be eliminated if the part were outsourced. An outside supplier has offered to sell $20,000$ units of part R$-3$ each year to Royal for $$23\mathrm{.}50$ per part.

$1.$ If Royal purchases part R$-3$ from the supplier, the capacity Royal was using to manufacture the part would be idle. Calculate the difference in cost of making or outsourcing the part. Should Royal purchase the part from the supplier?

$2.$ If Royal purchases part R$-3$ from the supplier, the capacity Royal was using to manufacture the part could be leased out for $$150,000$ per year. Calculate the difference in cost of making or outsourcing the part. Should Royal purchase the part from the supplier?

$3.$ What other factors should Royal consider before deciding to purchase the part from the supplier?