The management of Company XYZ faces a crucial decision: whether to persist with in$-$house manufacturing of a component or to outsource it to an external supplier. Let's delve into the details to comprehend the best course of action.

Cost Analysis for Producing $10,000$ Units Internally:

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Hints: You remember variable cost varies as increases in production and vice versa. Fixed cost remains same in total, irrespective of increase or decrease in production.

Total Cost: $$70$ per unit, $$700,000$ for $10,000$ units produced.

External Supplier's Cost: $$80$ per unit.