The company is now producing the heavy duty gear shifters used in its most popular line of mountain bikes, the company's accounting department reports the following costs of producing the shifter internally: 8000units 48000 Per unit Direct materials Direct labour 6. 4 32000 Variable overhead 1 8000 Supervisor salary Depreciation of special equipment Allocated general overhead Total cost 24000 2 16000 40000 21 168000 An outside supplier has offered to sell mountain coat cycles 8000 units a year at a price of only 19 S each. Required: Should the company stop producing the shifters internally and start purchasing them from the outside supplier? (Make or buy analysis).