The management of a fictional manufacturing company, XYZ Inc., is faced with a decision regarding the production of a component named "Widget" for their flagship product. The Widget is a critical part of their product line, and management must decide whether to continue producing it in$-$house or to outsource its production to an external supplier.

The following information was collected from the accounting records and production data for the year ending December $31,2022.$

$5,000$ units of Widget were produced in the Machining Department.

Variable manufacturing costs applicable to the production of each Widget unit were:

Direct materials $$0\mathrm{.}80$

Direct labor $$0\mathrm{.}30$

Indirect labor $$0\mathrm{.}43$

Utilities $$0\mathrm{.}40$

Fixed manufacturing costs applicable to the production of Widget were:

$\backslash$table$[[$Cost Item,Direct,Allocated$],[$Rent$,$$$4,100,$$$900$