Subject name: Accounting & Finance Decision-Making Mangers

The below problem is a Differential Analysis problem, including *****Make-Buy type problem*** Please utilize differential analysis to solve the problems. Please show all work and responses in the answer with an explanation... on the Excel worksheet with formulas.

Warrior Company manufactures 10,000 units of part L1 each year for use on its production line. At this level of activity, the cost per unit is as shown below:

Direct materials					$ 5.70
Direct labor					8.00
Variable manufacturing overhead					4.30
Fixed manufacturing overhead					12.00
Total cost per part					$ 30.00

An outside supplier has offered to sell 10,000 units of part L1 each year to Warrior for $30.00 per part. If Warrior accepts this offer, the facilities now being utilized to manufacture part L1 could be rented to another company for $125,000 annually. Warrior Company has determined that $5 of the fixed manufacturing overhead being applied to part L1 would continue even if part L1 were purchased from the outside supplier. Required. Should Warrior Company accept this offer? Support your answer with complete computations. Show your work!