The Cross Country Ski Company currently produces bindings for the skis that it also produces and sells. The monthly cost of producing 600 sets of bindings is as follows:

Unit-level raw materials	$17,250
Unit-level direct labor	$11,000
Unit-level overhead	$6,500
Batch-level costs	$3,750
Product-level costs	$9,200
Allocated facility-level costs	$15,000

Winter Sports Enterprises has offered to sell comparable bindings to Cross Country Ski Company for $68.50 per set. The Cross Country Ski Company is contemplating a decision whether they should continue to produce the bindings in-house or outsource the production to Winter Sports Enterprises.

Required:

1. Identify the costs that are relevant to this business decision.

2. Should Cross Country Ski Company continue to manufacture the bindings? Support your answer showing appropriate computations to support your decision.