Structuring a Make$-$or$-$Buy Problem

Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce $5,000$ units of its main food ingredient for use in its restaurants or to purchas them from an outside supplier for $$12$ each. Cost information on internal production includes the following:

$\backslash$table$[[,$Total Cost,Unit cost$],[$Direct materials,$$25,000,$$$5\mathrm{.}00$